Compute the Fixed cost

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Question 1. At present, total outstanding shares of X Corp is 100,000 shares. X Corp issued additional 200,000 share at 20 per share. A, a current holder of 40,000 shares. A must be given the option of to buy for how many shares? (Stockholders have preemptive right)

a. 200, 000 shares

b. 40,000 shares

c. 50,000 shares

d. 80,000 shares

Question 2. For a sales level of 3,000,000; X Corp has DOL of 2x, DTL of 3x and CM ratio is 60%. Compute the Fixed cost.

a. 1,200,000

b. 600,000

c. 900,000

d. None of the above

Reference no: EM133228777

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