Question1: Maxville Motors has annual sales of $15,000. Its variable costs equal 60 percent of its sales, and its fixed costs equal $1000. If the company's sales raise 10 percent, determine the percentage increase in the company's earnings before interest and taxes (EBIT)?
Question2: In 1958 the average tuition for one year at an Ivy League school was $1,800.Thirty years later, in 1988, the average cost was 13,700 dollar. Determine the growth in tuition over the 30-year period?
Question3: Cleveland Corporation has 100,000 shares of common stock outstanding, its net income is $750,000, and its P/E is 8. Calculate the company's stock price?
Question4: Claus & co. is planning a zero coupon bond issue that has a par value of $1000 and matures in two years. The bond will be sold today at a price of 826.45 dollar. If the firm's marginal tax rate is 40%, calculate the yearly after tax cost of debt to the company on this issue?