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Calculating Break - Even [ LO 3 ] A project has the following estimated data: price = $ 5 4 per unit; variable costs =

Calculating Break-Even [LO3] A project has the following estimated data: price
=$54 per unit; variable costs =$36 per unit; fixed costs =$19,300; required return
=12 percent; initial investment =$26,800; life = four years. Ignoring the effect of
taxes, what is the accounting break-even quantity? The cash break-even quantity?
The financial break-even quantity? What is the degree of operating leverage at the
financial break-even level of output?
Using Break-Even Analysis [LO3] Consider a project with the following data:
accounting break-even quantity =14,200 units; cash break-even quantity =10,300
units; life = five years; fixed costs =$170,000; variable costs =$27 per unit; re-
quired return =12 percent. Ignoring the effect of taxes, find the financial break-even
quantity.Calculating Yields [LO1] In Problem 1, what was the dividend yield? The capital
gains yield?
Return Calculations [LO1] Rework Problems 1 and 2 assuming the ending share
price is $71.
Calculating Returns [LO1] Suppose you bought a bond with an annual coupon of
7 percent one year ago for $970. The bond sells for $940 today.
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