Question: Please explain the following 4 formulas. Formulas 1 and 2 are regarding Operating Leverage 1.) Operating Breakeven: EBIT= PQ-VQ-F=0 2.) Breakeven Quantity: Q BE =

Please explain the following 4 formulas.

Formulas 1 and 2 are regarding Operating Leverage

1.) Operating Breakeven: EBIT= PQ-VQ-F=0

2.) Breakeven Quantity: QBE=Please explain the following 4 formulas. Formulas 1 and 2 are regarding

Formulas 3 and 4 are regarding the Hamada Equation

3.) Firms Current Beta: bL=bU[1+(1-T)(D/E)]

4.) Firms Unlevered Beta: bU=bL/[1+(1-T)(D/E)]

1-d

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