Question: Part A & B please, thank you Grommit Engineering expects to have net income next year of $21.78 million and free cash flow of $10.89

 Part A & B please, thank you Grommit Engineering expects to

Part A & B please, thank you

Grommit Engineering expects to have net income next year of $21.78 million and free cash flow of $10.89 million. Grommit's marginal corporate tax rate is 28%. a. If Grommit increases leverage so that its interest expense rises by $3.7 million, how will net income change? b. For the same increase in interest expense, how will free cash flow change? a. If Grommit increases leverage so that its interest expense rises by $3.7 million, how will net income change? If Grommit increases leverage so that its interest expense rises by $3.7 million, the net income will fall to $ million. (Round to two decimal places.)

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