1. The Children's Museum puts on a series of puppet shows to increase interest in the museum and promote membership. The puppet shows have a fixed costs of $2.50 per ticket. If they raise their ticket price from $3.50 to $4.00, the break-even level will:
(a) increase,
(b) decrease,
(c) stay the same,
(d) cannot determine with information.
2. JackITs has 5.0 million shares of common stock outstanding, 1.0 million shares of preferred stock outstanding, and 20.00 thousand bonds. If the common shares are selling for $28.00 per share, the preferred share are selling for $13.50 per share, and the bonds are selling for 98.00 percent of par, what would be the weight used for equity in the computation of JackIT's WACC?
83.06%
80.88%
33.33%
66.67%