Moneyball Sports Complex, Inc. had Earnings before Interest and Tax of $300 million last year, a Depreciation expense of $50 million, net Capital Expenditures of $100 million and added $10 million to its net working capital. These figures are all expected to grow at a constant rate of 5%, indefinitely. The firm finances with 50% debt and 50% equity and the tax rate is 30%. Before tax cost of debt is 10% and the cost of equity is 22%. Calculate firm value.

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no