Aspen company is financed with $50 million of 8% debt and $75 million of common equity. the firm has 1 million shares of common stock outstanding. aspen needs to raise $20 million and is undecided between two possible plans for raising this capital: plan a: equity financing. under this plan, common stock will be sold at $100 per share. plan b: levered financing. under this plan, half of the capital will be raised with equity at $100 per share and half will be raised by selling 12% coupon bonds. at what level of operating income (ebit) will the firm be indifferent between the two plans? assume a 34% marginal tax rate.

Hank itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. the following are required for production of a 70-gallon batch. 2,700 ounces of grape concentrate at $0.04 per ounce 77 pounds of granulated sugar at $0.43 per pound 133 lemons at $0.79 each 350 yeast tablets at $0.24 each 350 nutrient tablets at $0.14 each 2,500 ounces of water at $0.001 per ounce hank estimates that 4% of the grape concentrate is wasted, 9% of the sugar is lost, and 32% of the lemons cannot be used. compute the standard cost of the ingredients for one gallon of wine. (round intermediate calculations and final answer to 2 decimal places, e.g.