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Doug Robinson and Dante are considering the possibility of opening their own manufacturing facility. They expect first-year sales to be $800,000, and they feel that

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Doug Robinson and Dante are considering the possibility of opening their own manufacturing facility. They expect first-year sales to be $800,000, and they feel that their variable costs will be approximately 40% of sales. Their fixed costs in the first year will be $200,000. Doug and Dante are considering two ways of mancing the firm: (a) 40% equity financing and 60% debt at 10%, or (b) 100% equity financing. They can sell common stock to their relatives for $10 per share. Either way, they will need to raise $1,000,000. The tox rate is 40%. What is the net income for the levered option? What is the net income of the unlevered option? What is the earnings per share for the levered option? What is the earnings per share for the unlevered option? What is the DOL for the company to two decimal places? What is the net income for the levered option? What is the net income of the unlevered option? What is the earnings per share for the levered option? What is the earnings per share for the unlevered option? What is the DOL for the company to two decimal places? What is the DFL for the levered option to two decimal places? What is the DFL for the unlevered option to two decimal places? What is the DCL for the levered option to two decimal places? What is the DCL for the unlevered option to two decimal places

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