your answers, theoretically and empirically Company XYZ wants to double its assets in anticipation of increas market demand. New financing alternatives are: (i) Common Stock to net 850 a share (price/earnings ratio 25 times (ii) Straight 8% debt (price/earnings ratio 20 times). in 9. Current Balance Sheet $10,000 Common Stock ($10 par) 30,000 10,000 $50,000 Debt (6%) Surplus Total Assets $50,000 Total Claims (ii) In addition, assume that EPS $6, total fixed cost $5,000, and the tax rate is 50%. Please answer the following questions. (a) What are the expected EPS for Alternative (6) and the (b) What are the expected market prices for both Alternative (0) (c) What is the current degree of financial leverage for this expected EPS for Alternative ()? and Alternative (ii)? company