MOST IMPORTANTLY IF YOU CAN FIND OUT THE ORIGIN (BOOK) OF THIS QUESTION.

OBP Co. and Grand Slam Inc. both manufacture and sell baseball bats. OBP has variable production costs of $65 per unit and fixed production costs are $105 million. On the other hand, Grand Slam has a cost per bat of $67 and fixed production costs of $100 million. OBP has an $80 million loan outstanding, on which it pays 10% interest, while Grand Slam has issued bonds with a face value of $50 million, on which it pays an 8% coupon annually. The entire baseball bat market sells about 8 million units per year at $95 each, and market share is divided evenly only between these two companies. Both companies are subject to a 30% tax rate. Calculate for each company: 1. DOL 2. DFL 3. DTL 4. QBE 5. QOBE 6. In which company would you invest given: this market scenario b. A scenario where the market sells 1 million more bats A scenario where market sells 1 million less bats Provide your reasoning. a. c. OBP Co. and Grand Slam Inc. both manufacture and sell baseball bats. OBP has variable production costs of $65 per unit and fixed production costs are $105 million. On the other hand, Grand Slam has a cost per bat of $67 and fixed production costs of $100 million. OBP has an $80 million loan outstanding, on which it pays 10% interest, while Grand Slam has issued bonds with a face value of $50 million, on which it pays an 8% coupon annually. The entire baseball bat market sells about 8 million units per year at $95 each, and market share is divided evenly only between these two companies. Both companies are subject to a 30% tax rate. Calculate for each company: 1. DOL 2. DFL 3. DTL 4. QBE 5. QOBE 6. In which company would you invest given: this market scenario b. A scenario where the market sells 1 million more bats A scenario where market sells 1 million less bats Provide your reasoning. a. c