The most important and frequently re-analyzed part of a feasibility study is the ________ aspect

When considering VA loans, the unique feature about down payments which are required is:

A: They are never more than 3% of the CRV; B: There is no down payment; C: They are determined by the CRV; D: They vary according to the amount borrowed.

Donat Corp. is a small company looking at two possible capital structures. Currently, the firm is an all-equity firm with $600,000 in assets and 100,000 shares outstanding. The market value of each share is $6.00

The CEO of Donat is thinking of leveraging the firm by selling $300,000 of debt financing and retiring 50,000 shares, leaving 50,000 shares outstanding. The cost of debt is 5% annually, and the current corporate tax rate for Donat is 30%. The CEO believes that Donat will earn $50,000 per year before interest and taxes. Which of the statements below is TRUE? A) All-equity EPS is $0.35. B) 50/50 debt-to-equity EPS is $0.49. C) Shareholders will be better off by $0.14 per share under a firm with $300,000 in debt financing versus a firm that is all-equity. D) Statements A, B, and C are all true.