Please slove all of them, I know it's against the rules but I don't have enough pic to use

14-3 RISK ANALYSIS a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPS) = $5.10, 04 = $3.61, E(EPS) = $4.20, and 0,= $2.96. Probability 0.1 0.2 0.4 0.2 0.1 $1.80 $5.10 $8.40 $11.70 A Firm A: EPS Firm B: EPS Firm C: EPS ($1.50) (1.20) (2.40) 1.50 4.20 6.90 9.60 1.35 5.10 8.85 12.60 b. You are given that o = $4.11. Discuss the relative riskiness of the three firms' earnings. 14-6 BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $26, fixed costs are $155,000, and variable costs are $13 per watch. a. What is the firm's gain or loss at sales of 9,000 watches? At 15,000 watches? b. What is the break-even point? Illustrate by means of a chart. c. What would happen to the break-even point if the selling price was raised to $33? What is the significance of this analysis? d. What would happen to the break-even point if the selling price was raised to $33 but variable costs rose to $24 a unit? 14-7 FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $14 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 40%. The CFO has estimated next year's EBIT for three possible states of the world: $4.2 million with a 0.2 probability, $2.8 million with a 0.5 probability, and $700,000 with a 0.3 probability. Calculate Neal's expected ROE, standard deviation, and coefficient of variation for each of the following debt-to-capital ratios; then evaluate the results: Debt/Capital Interest Ratio Rate 0% 10 9% 50 11 60 14