1. In each of the following cases, find the unknown variable: (Do not round intermediate calculations. Round your answers to the nearest whole number, e.g., 32.) Accounting Break-Even Unit Price Unit Variable Cost Fixed Costs Depreciation 60,000 $ 20 $ 10 $ 500,000 $ 100,000 10 2,000,000 1,000,000 15,000 40 100,000 50,000
2. Which WACC calculation include an adjustment for income tax effect?
a. Cost of Debt
b. Cost of Equity
c. Cost of Capital
d. Both a. and b.
Describe why an adjustment is made for income tax effect.