A company's fixed operating costs are $700,000, its variable costs are $2.90 per unit, and the product's sales price is $4.40. What is the company's breakeven point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole.

units

Jackson Trucking Company is in the process of setting its target capital structure. The CFO believes the optimal debt-to-capital ratio is somewhere between 20% and 50%, and her staff has compiled the following projections for EPS and the stock price at various debt levels:

Debt/Capital Ratio	Projected EPS	Projected Stock Price
20%	$3.15	$33.75
30	3.40	37.25
40	3.70	35.75
50	3.55	32.25

Assuming that the firm uses only debt and common equity, what is Jackson's optimal capital structure? Round your answers to two decimal places.

% debt % equity

At what debt ratio is the company's WACC minimized? Round your answer to two decimal places.

%

Harley Motors has $14 million in assets, which were financed with $8.4 million of debt and $5.6 million in equity. Harley's beta is currently 1.9 and its tax rate is 30%. Use the Hamada equation to find Harley's unlevered beta, b_U. Round your answer to two decimal places.

The Neal Company wants to estimate next year's return on equity (ROE) under different leverage ratios. Neal's total capital is $16 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 40%. The CFO has estimated next year's EBIT for three possible states of the world: $4.5 million with a 0.2 probability, $2.8 million with a 0.5 probability, and $600,000 with a 0.3 probability. Calculate Neal's expected ROE, standard deviation, and coefficient of variation for each of the following debt-to-capital ratios. Do not round intermediate calculations. Round your answers to two decimal places at the end of the calculations.

Debt/Capital ratio is 0.

R