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QUESTION 1 [10 MARKS] Use the information provided in the table below to answer the given questions a) Calculate the break-even point in units and
QUESTION 1 [10 MARKS] Use the information provided in the table below to answer the given questions a) Calculate the break-even point in units and the break-even value in Rand (5) b) Determine the margin of safety in units (3) c) What do you understand by the term break-even? (2) QUESTION 2 [10 MARKS] Mandela Pty Ltd, a furniture manufacturer, has been offered an opportunity to accept a project that has the following mixed stream of cash flows over the next 5 years: If the company must earn at least 12% on this project. What is the present value of this project? QUESTION 3 [10 MARKS] Assume a company has cost of equity of 12.50% and after-tax cost of debt of 7.22%. What is the weighted-average cost of capital (WACC) if the target debt-equity ratio is 30%
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