Aant Investments Inc. currently has $3.5 million in debt outstanding, bearing in interest rate of 12.3%. It wishes to finance a $5 million expansion program and is considering five alternatives. Plan Debt Preferred Equity 1 0% 0% 100% 2 35% 0% 65% 3 50% 0% 50% 4 50% 20% 30% 5 60% 20% 20% The preferred stock dividend will be 12% and the price of common stock will be $18 per share. The company currently has 750,000 shares of common stock outstanding and is in 40% tax bracket. a. If the earnings before interest and taxes are $1.5 million, what would be earning per share for five alternatives, assuming no immediate increase in the operating profit. b. Compute the degree of financial leverage (DFL) for each alternatives at the expected EBIT level of $1.5 million. c. Which alternative do you prefer and why?

What is the opportunity cost in this scenario? harry has been very busy at work for the past two weeks. he has been working weekends too. finally, he is going to get a weekend off. originally, he planned to paint his apartment that weekend. he also considered going fishing for the weekend. but then his parents called and asked him to come for dinner because it has been a while since they have seen each other. later on, his friend theo informed him about a surprise birthday party for another friend. theo plans to reserve a room at a restaurant for the celebration, with the cost to reserve the room split between theo, harry, and three other friends. now harry is confused about what he should do over the weekend. he decides that, for him, the most important commitments are going over to his parent's house and attending his friend's birthday party. in the end, harry decides to see his parents.

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

You are president of a large corporation. at a typical monthly meeting, each of your vice presidents gives standard area reports. in the past, these reports have been good, and the vps seem satisfied about their work. based on situational approach to leadership, which leadership style should you exhibit at the next meeting?