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PLS ANSWER WITH SOLUTION ASAP THANK U XYZ Co is opening their new business next month. They have provided the following information: Variable Costs =
PLS ANSWER WITH SOLUTION ASAP THANK U
XYZ Co is opening their new business next month. They have provided the following information:
Variable Costs = 35% of sales
Fixed Costs = 360,000
1st Years Sales est. = 1,050,000
Startup Costs = 1,800,500
Two Financing Options:
1) 60% Equity Financing and 40% Debt at 13%
2) 100% Equity - Common Stock can be sold at $4.50 per share
A) Compute break-even point. B) Compute DOL. C) Compute DFL and DCL for both financing plans.
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