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cost of equity is 13%, and it uses no debt. a. What is the incremental profit? Enter your answer in dollars. For example, an answer
cost of equity is 13%, and it uses no debt. a. What is the incremental profit? Enter your answer in dollars. For example, an answer of $4 million should be entered as 4,000,000, not 4 . Round your answer to the nearest dollar. $ % Should the firm make the investment? b. Would the firm's break-even point increase or decrease if it made the change? The change would the break-even point. c. Would the new situation expose the firm to more or less business risk than the old one? I. The new situation would obviously have more business risk than the old one. II. The new situation would obviously have less business risk than the old one. III. It is impossible to state unequivocally whether the new situation would have more or less business risk than the old one
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