Square Root Beer Inc. has $69 million in current assets and $109 million in fixed assets.

Earnings before interest and taxes (EBIT) are $60 million for the year. The tax rate is 21%.

Short-term financing costs 7% and long-term financing costs 10%.

What is net income if the firm finances 70% of its assets with long-term debt and the rest with short-term debt (in $ million)?

What is net income if the firm finances only 40% of its assets with long-term debt and the rest with short-term debt (in $ million)?