Billy's is currently an all equity firm that has 105000 shares of stock outstanding at a market price of $37.13 a share. the firm has decided to leverage its operations by issuing $13 of debt at an interest rate of 4.2 percent. this new debt will be used to repurchase shares of the outstanding stock. the restructuring is expected to increase the earnings per share. what is the minimum level of earnings before interest and taxes that must be achieved in order for this to occur (that is, what is the breakeven ebit? ) ignore taxes.

Which is the correct expansion of the term internet? a. internetwork b. institutional network c. instructional network d. international network

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?