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Input Data Plan A (Lower Fixed Cost) (Higher Variable Cost) (No Debt) Plan U (Higher Fixed Cost) (Lower Variable Cost) (No Debt) Plan L (Higher Fixed Cost) (Lower Variable Cost) (Debt) S 200 $200 $200 $200 $200 $150 $2.50 Required Capital Book Equity Debt Interest Rate Sales Price (P) Tax Rate (T) Expected Unit Sold (Q) Fixed Costs (1) Variable Costs (V) 8% $2.50 40% 120 120 T $20 $1.60 $60 $1.10 Question 23 (1 point) Saved Based on the information above, what are the NOPATs of Plan A and Plan U? ONOPAT of Plan A = $49.00, NOPAT of Plan U = $48.52 ONOPAT of Plan A = $41.20, NOPAT of Plan U = $20.21 ONOPAT of Plan A = $21.41, NOPAT of Plan U = $12.85 ONOPAT of Plan A = $41.10, NOPAT of Plan U = $12.11 O NOPAT of Plan A = $52.80, NOPAT of Plan U = $64.80 Question 24 (1 point) Based on the information from the table, what are the ROIC of Plan A, and Plan U? OROIC of Plan A - 26.40%, ROIC of Plan B = 32.40% ROIC of Plan A = 26.40%, ROIC of Plan B - 26.40% OROIC of Plan A = 10.70%, ROIC of Plan B = 6.050% OROIC of Plan A = 10.70%, ROCI of Plan B - 12.48% None of the above Question 25 (1 point) Based on the information from the table, what do you expect the ROE of plan L versus plan U? O Plan U should have lower ROE because of the higher NI. Plan U should have lower ROE because of NI was sharing over a smaller base of equity. Plan L should have higher ROE because of NI was sharing over a smaller base of equity. Plan L should have lower ROE because of higher NI. O None of the above. Question 26 (1 point) Based on the information from the table, what can you conclude regarding the difference in total cashflow distribution between Plan U and Plan L? Plan L should distribute more total cash flow to bondholders and stockholders due to tax saving in interest expense. Plan L should distribute more total cash flow to bondholders and stockholders due to the higher revenue. Plan U should distribute more total cash flow to bondholders and stockholders due to tax saving in interest expense. Plan U should distribute more total cash flow to bondholders and stockholders due to higher revenue. None of the above

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