do both please :)

A company needs $225,000 to fund a new project next year. The firm expects to earn excess cash of $50,000 this year after all expenses, taxes, and dividends are paid. The firm can borrow up to $150,000 at 6.5 percent interest for up to ten years or, it can issue up to 25,000 new shares of stock that will have an estimated value of $20 a share at the end of this year. According to the pecking-order theory, how much will the firm raise in new equity capital to fund this project? O $175,000 0 $0 $25,000 O $225,000 Question 15 4 pts A local firm owes $125 to its bondholders in principal and interest payments. If the economy continues as is, then the form expects to generate a cash flow of $250, but that cash flow will decrease to $75 if the economy slides into a recession. If the firm were to face bankruptcy, it will incur $50 in legal and other fees. What amount will the bondholders be paid in the case of a recession? O $125 $75 $45 O $25