Please help with these questions

1. The Playing Card Inc. has identified two methods for producing cards. One method involves using a machine having a fixed cost of $10,000 and variable cost of S1.00 per deck of cards. The other method would be to use a less expensive machine with a fixed cost of $5,000 and variable cost of S1.50 per deck of cards. If the selling price per deck of cards is the same under each method, at what level of output will the two methods produce the same net operating income? 2. The following information applies to Lott Enterprises Operating Income (EBIT) outstanding 120 Debt $1.45 Interest expense price lax rate S300,000 Shares ,000 $100,000 EPS 10,000 Stock $17.40 40% The company is considering a recapitalization where it would issue $348,000 worth of new debts and use the proceeds to buy back $348,000 worth of common stock. The buyback will be at the current stock price of $17.40 The recapitalization will have no effect on the operating income or tax rate. After recapitalization, the company's interest expense will be S50,000 Assuming that the recapitalization has no effect on the company's P/E ratio, what will be the expected stock price after recapitalization? 3. Simon Software Co. is trying to estimate its optimal capital structure. Right now, Simon has a capital structure that consists of 20% debt and 80% equity. The risk-free rate is 6% and the market risk premium is 5%. Currently the company's cost of equity is 12% and its tax rate is 40%. What would be Simon's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity