5. Kitchen Co. is a company that produces and sells kitchenware. It has estimated the following data for the upcoming year: 4 points Number of units sold will equal 850,000 unit. Variable cost per unit will equal $5. Fixed costs will equal $1,050,000. What is the minimum price that must be set by Kitchen Co. in order to cover its fixed costs? O a $5.23 O b. $6.23 O c. $7.23 O d. $8.23 e. None of the above 6 points 6. Oprah Inc. currently has 2 million shares outstanding selling at $180 each. It has also reported a DPS of $12.56 per share. The management thinks that the price and the DPS are too high, and they must be reduced through a split. The CFO has provided you with the following analysis: The DPS has to be reduced at least by 52% The stock price range has to be between $65 and $75 per share. Based on the previous data, which of the following splits must be considered by the company? O a. Split 7-for-2 O b. Split 5-for-2 O c. Split 4-for-2 O d. Split 6-for-2 O e None of the above 7. Warren Cohas recently published the following data: 7. Warren Co. has recently published the following data: * 4 points Price per sbare $30 Number of shares outstanding 500,000 EPS $5.2 DPS $3.4 The company's capital budget for 2021 is expected to be $1,500,000. The company wants to avoid issuing any new common equity during the coming year and is committed to maintaining its current DPS. Given these constraints, what percentage of the capital budget must be financed with debt? a 30% O b. 70% O C. 40% d: 60% O None of the above