3. The Mason Motor Co. has a dividend reinvestment plan in which 30% of common stockholders participate. Last year EPS was $4.20 and its payout ratio was 42%. There are 2 million shares of common stock outstanding. How much new capital did the firm raise through the reinvestment program?

4. The Ozona Oxygen Co. has fixed operating costs of $270,000 with a sales price of $119 and variable costs of $104.50 with current sales of 25,000 units. Calculate the firms breakeven point and degree of operating leverage.