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QUESTION NUMBER 3 PLEASE depreciation is an additional $10,000 per year. The product will sell for $15 and the variable cost to produce each item
QUESTION NUMBER 3 PLEASE
depreciation is an additional $10,000 per year. The product will sell for $15 and the variable cost to produce each item is $11.00. The firm's weighted average cost of capital is 10 percent. If the tax rate is 40 percent, what is the projects. a) Accounting break-even point? (5 Points) b) Cash break-even point? (5 Points) 3) Consider the following estimates of returns and the likelihood that these returns could actually happen. Assuming that the stock returns are normally distributed, what is the range of possible returns that will occur with 68% likelihood? (10 Points) 4) What is the price of a UK Treasury bond, semi-annually coupon pay, with a faceStep by Step Solution
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