The costs of materials used in production are transferred from the Materials Inventory account directly to the Finished Goods Inventory account

Which of the following is not a major step when formulating linear programming models?

a. Defining decision variables b. Defining the value of decision variables c. Formulating the objective function d. Identifying the set of constraints e. Identifying the set of non-negativity constraints

Consider two firms that are identical in every way except that one has $1,200 of debt and 350 shares of stock outstanding, while the other is all-equity and has 400 shares of stock outstanding

Assume that the debt is a perpetuity with annual coupons at the rate of 7%. What is each firm's earnings per share if EBIT is $5,000? Assume a tax rate of 40%. Leveraged Firm All-Equity Firm EBIT $5,000 $5,000 EPS ? ? A) EPSL = 8.39; EPSE = 7.50 B) EPSL = 8.39; EPSE = 8.39 C) EPSL = 7.50; EPSE = 7.50 D) EPSL = 7.50; EPSE = 8.39 E) EPSL = 8.43; EPSE = 7.50