22. Which of the following would tand to increase Elia target debt ratio, other things held constant? .. The coate associated with Aling for bankiptey Inerne. b. the corporate tax rate is increased. c. The personal tax rate is increased d. The Tederal Reserve tightens interest rates in an effort to fight inciation .. The company's stock price hits a new low. 23. The firm's target capital structure should do which of the following? a. Maximize the earnings per share (PS). b. Minimize the cost of debt (a). e. Obtain the highest possible bond rating d. Minimize the cost of equity (). .. Minimize the weighted average cost of capital (WACC) 24. Southwest U's campus book store sells course packs for $15 each, the variable cost per pack is $9. fixed costs to produce the packs are $200,000, and expected annual sales are 50.000 packs. What are the pre-tax profits from sales of course packs? a. $72,900 b. $81,000 c. $90,000 d. $100,000 e $110,000 25. A group of venture investors is considering putting money into Lema Books, which wants to produce a new reader for electronie books. The variable cost per unit is estimated at $250, the sales price would be set at twice the vc/unit, or $500, and fixed costs are estimated at $750,000. The investors will put up the funds it the project is likely to have an operating income of $500,000 or more. What sales volune would be required in order to meet the minimum profit goal? (Rint: Use the breakeven formula, but include the required profit in the numerator) MacBook Air 000 000 Ft FS F10 F6 FB