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 financing 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 tax rate is 40%.

What is the net income for the levered option?	Answer 1Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the net income of the unlevered option?	Answer 2Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the earnings per share for the levered option?	Answer 3Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the earnings per share for the unlevered option?	Answer 4Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the DOL for the company to two decimal places?	Answer 5Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the DFL for the levered option to two decimal places?	Answer 6Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the DFL for the unlevered option to two decimal places?	Answer 7Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the DCL for the levered option to two decimal places?	Answer 8Choose...1.71$132,000$1.681.00$3.302.951.27$168,000$280,0002.18
What is the DCL for the unlevered option to two decimal places?