Question: Davis Inc. has fixed operating costs of $1,000,000 and variable costs of $80 per unit. If it sells the product for $100 per unity, what

  1. Davis Inc. has fixed operating costs of $1,000,000 and variable costs of $80 per unit. If it sells the product for $100 per unity, what is the breakeven quantity?
  1. State Flag Co.has a beta of 1.40. The tax rate is 40%, and State Flag is financed with 40% Debt. What is State Flag’s unlevered beta?

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