Question 22 Based on the following information, which firm is operating closer to its operating breakeven point, Qopae? Firm B Firma 4.0 8.0 Degree of operating leverage (DOL) Degree of total leverage (DTL) 2.4 10.8 Firm B, because it has the higher DTL. Firm B, because it has the lower DOL Firm B, because it has the higher degree of financial leverage (DFL). Firm A. because it has the lower DTL. Firm A, because it has the higher DOL Question 23 1 pts Edwin's Exquisite Eatery (EEE) has paid a common stock dividend equal to $6 for the past 10 years, and it expects to continue paying the same dividend forever EEE's common stock is currently selling for $50 per share. When it issues new common stock to raise funds. EEE pays its investment banker 7.7 percent for flotation costs. The company's marginal tax rate is 40 percent What is EEE's cost of new common equity,,? 72% 7 13.0% 12.0% To answer this question, the growth rate le must be known Question 24 1 pts National Maps (NM) is evaluating the following independent capital budgeting projects: Project M S U IRR 16.0% 145 13.5 Cost $15,000 20,000 12,000 NM's capital structure contains 30 percent debt, it has no preferred stock. I NM does not have to issue new common stock to raise funds, its weighted average cost of capital (WACC) is 12.5 percent; if new common stock must be issued, the WACC, is 15 percent. No expects to generate $31.500 in retained earning this yout. Which project(s) should be purchased? Project only O Project S and Project U Project Mand Projects All projects should be purchased O Project M only