WarrenB1

If the company will finance the fixed assets with 40% debt, the firm's cap structure will effective change. If it currently has 30% debt, after the fixed asset increase, cap structure will change to 35% debt/65% equity. Keep in mind they have a 50% debt target ratio, so the firm will borrow more to turn that 35% to 50%.

1) To calculate FCFE with target ratios, you would use a different formula:
FCFE = NI - (1-DR)*(FC Inv-Dep) - [(1 - DR)*(WC Inv)], of course DR is the target d/a ratio

2) I'm not sure about this one, but I would use 50% personally