Neptune Corporation has an existing capital structure that is all equity. The firm has calculated the EBIT-EPS indifference point for 2 different capital structures to finance a new project. Plan A is all debt financing and Plan B is all equity financing. Which of the following statements is correct? a. At the EBIT-EPS indifference point Neptune will prefer Plan B
b. Plan A and Plan B result in the same EPS at the EBIT-EPS indifferent point
c. Both Plan A and Plan B increase the firm's leverage
d. Both Plan A and Plan B decrease the firm's leverage
e. At the EBIT-EPS indifference point, Neptune will prefer Plan A

What does the consumer price index measure? a. the change in prices of all goods and services over time b. the change in prices of specific goods and services over time c. the change in prices of final goods and services over time

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Double corporation acquired all of the common stock of simple company for