For the coming year, crane inc. is considering two financial plans. management expects sales to be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 35%. under plan a it would use 25% debt and 75% common equity. the interest rate on the debt would be 8.8%, but the tie ratio would have to be kept at 4.00 or more. under plan b the maximum debt that met the tie constraint would be employed. assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the roe change in response to the change in the capital structure?

a. 3.83%
b. 4.02%
c. 4.22%
d. 4.43%
e. 4.65%

Horace society is planning its annual western fair raceway gala. the gala committee has assembled the following expected costs for the event: dinner (per person) $10 gaming token and program (per person) $2 prize payouts $4,300 tickets and advertising $800 private box suite rental $1,700 lottery licenses $200 the committee members would like to charge $40 per person for the evening’s activities.required: 1. what is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. assume that last year only 200 persons attended the dinner-dance. if the same number attend this year, what price per ticket must be charged in order to break even? 3. refer to the original data ($40 ticket price per person). prepare a cvp graph for the dinner- dance from zero tickets up to 600 tickets sold.