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The Corleone lmporting Company is thinking of extending its marke io the arca surrounding Atlantic City, New Jerscy. The expansion wil require an initial outlay of $10 million. Corleone's board of directon i considering three financing plans: (1) issuing 250,000 new shares a $4 each; (2) issuing 125,000 new shares at $40 cach and selling $5 millian of new 12% coupon bonds; or (3) issuing $10 million of new 12% coupe bonds. Corlcone currentiy has outstanding 2.5 million common thais $25 million face value of 10% coupon bonds, and $15 million face win of 8% coupon bonds. Corlcone's marginal tax rate is 25%. Calculaie the answers to parts (a), (b), and (c) to the nearest tenth of a cent. (a) If NOI is $16 million, what will be EPS for plan 1? For plan 27 For plan 3? (b) If NOI is $17 million, what will be EPS for plan 1? For plas 2 For plan 3? (c) If NOI is $18 million, what will be EPS for plan 1? For plaa 8 For plan 3? (d) At what level of NOI would plans 1 and 2 have the same EPO (c) At what level of NOI would plans 2 and 3 have the same 5PP9 (f) Plot on a graph (with NOI on the x-axis and EPS on the y-aia) ) I relationship between EPS and NOI for each of the three plat Notice that plan 2 does not result in the highest EPSS for aay of NOI. Why can't plan 2 necessarily be cxcluded from fert considerations? The Corleone lmporting Company is thinking of extending its marke io the arca surrounding Atlantic City, New Jerscy. The expansion wil require an initial outlay of $10 million. Corleone's board of directon i considering three financing plans: (1) issuing 250,000 new shares a $4 each; (2) issuing 125,000 new shares at $40 cach and selling $5 millian of new 12% coupon bonds; or (3) issuing $10 million of new 12% coupe bonds. Corlcone currentiy has outstanding 2.5 million common thais $25 million face value of 10% coupon bonds, and $15 million face win of 8% coupon bonds. Corlcone's marginal tax rate is 25%. Calculaie the answers to parts (a), (b), and (c) to the nearest tenth of a cent. (a) If NOI is $16 million, what will be EPS for plan 1? For plan 27 For plan 3? (b) If NOI is $17 million, what will be EPS for plan 1? For plas 2 For plan 3? (c) If NOI is $18 million, what will be EPS for plan 1? For plaa 8 For plan 3? (d) At what level of NOI would plans 1 and 2 have the same EPO (c) At what level of NOI would plans 2 and 3 have the same 5PP9 (f) Plot on a graph (with NOI on the x-axis and EPS on the y-aia) ) I relationship between EPS and NOI for each of the three plat Notice that plan 2 does not result in the highest EPSS for aay of NOI. Why can't plan 2 necessarily be cxcluded from fert considerations

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