Calculate the following based on 2018 numbers using the attached financial statements for XYZ Corp. Assume the only variable cost is the cost of goods sold.

1. Survival revenues (EBITDA breakeven – includes interest).
2. B.NOPAT Breakeven

c) Interpret these values and indicate what you would expect to happen to them if a large addition is made to fixed assets.

Financial Statements for XYZ Corp.

Balance Sheet for Period Ending December 31.

Income Statement for the Period Ending December 31.

PLS THIS IS MY LAST CHANCE ON THE HOMEWORK PLS REVIEW CAREFULLY THANKS

Tom hires workers to pack the tomatoes he grows. The market for tomatoes is perfectly​ competitive, and the price of tomatoes is​ $2 a box. The labor market is​ competitive, and the market wage rate is​ $16 an hour. The table shows the​workers' total product schedule.

1.

Calculate the marginal product of the third worker hired and that​ worker's value of marginal product.

The marginal product of the third worker hired is ...................... and that​ worker's value of marginal product is

​$ .....................

2..

If the wage that a competitive firm must pay its workers exceeds their value of marginal​ product, the firm will

A.

increase the quantity of labor it employs.

B.

decrease the quantity of labor it employs.

C.

lower the price of the good.

D.

raise the price of the good.

The Standard and Poor’s index retuned 8% in 1993 when treasury rates were

       2%. Hall Industries had a beta of 1.12. Hall Industries also has two bonds

       outstanding in equal amounts that yield 3% and 4% respectively. Hall

       Industries also has a preferred stock that yields 5%. The following weights

       are stocks 50%, bonds 20% and 20% and the preferred stock 10%. What is

       the Weighted Average Cost of Capital for Hall industries in1993 if taxes

       are .32%?

Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow:

The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours.

^* All depreciation

Required:

1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number.

2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number.

You are considering investment in a project which will cost $50 million which will be depreciated to 0 over the next 3 years. The project will generate revenues of $13 million per year for the next 6 years with no expenses (other than depreciation). The company’s cost is capital is 8% and the corporate tax rate is 40%. After the 6 years, the project ends. What is the NPV of the project?

A firm which is unleveraged holds 1million shares priced at £80 each. The firm is looking to change its capital structure by borrowing £50 million in debt and repurchasing shares. The loan contract stipulates that the firm will be required to pay off £10 million of its debt every year. Calculate the value of the restructured firm if the tax rate is 40% and the cost of debt is 8%.

1. The target capital structure for a firm is 40% common stock, 10% preferred stock and 50% debt. If the cost of common equity is 18%, the cost of preferred stock is 10%, the before-tax cost of debt is 8%, and the firm’s tax rate is 35%. What is its weighted average cost of capital?

Indicate the detailed steps on how to use a FINANCIAL CALCULATOR to solve the problems.

1. (25 points) The following is a simplified duopoly model of competition between two firms. Each firm is restricted to producing 25, 35, 50 or 100 units of output. The details of how the payoffs are derived are unimportant because payoffs are all given in the table below.

                                                                                  FIRM 2

1. (5 points) Firms simultaneously choose the quantity of outputs to produce, and then profits are realized. Find if there are any dominant strategies for the firms or not. In your response, make sure that you define what a dominant strategy is. Also describe the entire process that helped you in making that determination.

2. (5 points) Find the Nash equilibrium(s) in the game. Justify whether it is a Nash equilibrium or not. Describe in words.

3. (7.5 points) Now assume that FIRM 1 is the Stackelberg leader in this market. And FIRM 2 is the follower. Being the leader, FIRM 1 makes the first move in choosing the quantity of output, followed by FIRM 2. Draw the extensive form or the game tree for this sequential form game.

(7.5 points) Using the game tree, now determine the sub-game perfect Nash equilibrium(s). Describe the process that helps you in determining it

Seven fair coins are flipped. The outcomes are assumed to be independent. Let X be the number of heads.

What is the probability that X < 3?

What is the probability that X ≥ 4?

What is the probability that 3 ≤ X < 7