all parts are for the same question

La E eBook Winger Communications Corporation (WOC) produces ipods that for $28.70 perset, and this year's sales are expected to be 100,000 units. Variable production costs for the expected sales under present production methods are estimated at $10,200,000, and food production (operatina) costs at presentare $1,560,000. WC has $4,000,000 of debt outstanding at an interest rate of There are 240,000 shares of common stock outstanding, and there is no preferred stock. The dividend payout ratio u 70%, and wcc is in the 25% federal-ph-state tax bracket. WCC is a small company with averaot sales of $25 million or less duing the past 3 years, so it is exempt from the interest deduction limitation The company is considering investing $7,200,000 new equipment Sales would not increase, but variable costs per unit would decline by 20%. Also, foed operating costs would increase from $1,560,000 to $1,400,000, we could rose the required capital by borrowing $7,200,000 at 10% or by selling 240,000 additional sales of common stock at $30 per share What would be woct (1) under the old production process, (2) under the new processes debt, and (3) under the new process it was common stock? Do not round intemedinte calculations, Round your answers to the nearest cent 1. At what it was level would have the same assuming it undertakes the investment and facesit with debitor with stock> HV-variable cost peront 50.160,000/400,000, and SW 1.6 td - Pot and solve for Q.) not round tammediate caton Round your answer to the whole wurde units At what it sales tevel would under the three production/hanong setups that under the old on the new plan with debt financing and the new plan with stok finanong? (Hint: Note that you 510,200,000/460,000, and use the hints for parting the sequation equal to oro) Do not found intermediate con Round Your awers to the area whole number o plan New plan with debt anong Now plan with stock financing b. At what unit sales level would WC have the same EPS assumingit undertakes the investment and finances it with debt or with stock? (Hint: V Variable cost per unit $8,160,000/460,000, and EPS (POVOF-1)(1). Set EPSstock band solve for Q.) Do not found intermediate calculations. Round your answer to the nearest whole number units At what unit sales level would UPS under the three production financing setups that is under the old plan, the new plan with debt finanong, and the new plan with stock financing? (Hint: Note that Void - $10,200,000/460,000, and use the hints for partb, setting the EPS cation equal to zero.) Do not round intermedate caktuations. Round your answers to the nearest whole number Old lan units New pan with debt financing units New on with stock Inanong Units On the bus of the analysis in parts through and given that operating leveres tower under the new setup, which in the rest, which has the highest expected EPS, and which would you recommend Assume that there is still probability of sales anglows 250,000 units. Determine sont and at that sa level to the skins of the two financing plan Negative values should be indicated by minus. Do not round intermediate calcul Round your answers to the nearestent EPS Stock Winne