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Problem 20-01 Firme A has $9,400 in assets entirely financed with equity. Firmako has 39,400 in assets, but these assets are financed by $1,700 in

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Problem 20-01 Firme A has $9,400 in assets entirely financed with equity. Firmako has 39,400 in assets, but these assets are financed by $1,700 in debt (with a 15 percent rate of interest and $4,700 in equity. Both firmsseil 13,000 units of output at $2.60 per unit. The variable costs of production are 51, and fixed production costs are $15,000. (To ke the calculation, assume no income tax) 3. What is the operating income (EBIT) for both firms? Round your answers to the nearest della FormA: 5 FB: 5 b. What are the earnings after interest Round your answers to the nearest dollar Firms Firm B: 5 c.If sales increase by 10 percent to 14,300 units what percentage will each firm's camnings after interest increase? To answer the question determine the comings after taxes and compute the percentage increase in these coming from the answers you derived in parte. Round your answers to one decimal place FA Tim : d. Why are the percentage changes different The answers differ because im Auses Select percentage increase in earnings when sales expand while firm uses - Select The sul se af Select magnifies the

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