Parts of financial records for Company XYZ are: Anticipated sales = $400,000 Degree of financial leverage = 4/3 Variable cost = $200,000 Combined leverage effect = 2 Quantity sold = $100,000 units Profit margin = 5% Total debt = $200,000 Leverage ratio = 1/2 Common stock outstanding = 10,000 shares Current price per share = $40 Retention rate = 1/2 IRR = 8% Calculate the following: a) The total interest expense. b) The total fixed cost. c) The degree of operating leverage. d) The break-even quantity. e) The EAIT. f) Total corporation income tax expense. g) The return on net worth. h) The return on total asset. i) The EPS. j) The P/E ratio for common stock. k) The pay-out ratio for dividend. l) The growth rate for the common stock. m) The required rate of return. n) Total asset turnover. o) Analyze the financial situation of Company XYZ. p) If the probablistic concepts are applied to break-evenanalysis, how should the analyses in (o) be revised?

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51