PLEASE HELP!! I WILL LIKE ANSWER!! A firm needs $1.1 million in additional funds. These can be borrowed from a commercial bank with a loan at 6 percent for one year or from an insurance company at 9 percent for five years. The tax rate is 30 percent.

1. What will be the firm's earnings under each alternative if earnings before interest and taxes (EBIT) are $425,000? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $
2. If EBIT will remain $425,000 next year, what will be the firm's earnings under each alternative if short-term interest rates are 4 percent? Round vour answers to the nearest dollar. Commercial bank: $ Insurance company: $ If EBIT will remain $425,000 next year, what will be the firm's earnings under each alternative if short-term interest rates are 15 percent? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $

firm needs $1.1 million in additional funds. These can be borrowed from a commercial bank with a loan at 6 percent for one vear or from an insurance company at 9 percent for five years. The tax rate is 30 percent. a. What will be the firm's earnings under each alternative if earnings before interest and taxes (EBm) are \$425, 000? Round your answers to the nearest dollar. Cormercial bank: \$ Insurance company: $ b. If Eart will remain \$425,000 next year, what will be the firm's earnings under each alternatve if short-term interent rates are 4 percent? Round vou antwers to the nearest dollar. Commerdal bank: $ Insurance compary: s If calr will remain $435,000 next year, what will be the firm's earnings under each alternative if short-term interest rates are 15 percent? Round your answers to the nearest dollar. Commardal banks s