1. The level of sales at which earnings per share (EPS) will be the same whether the firm uses debt or common stock financing is known as _____.
a. ?the optimal capital structure
b. ?the beta point
c. ?the indifference point
d. ?the standard deviation of EPS
e. ?the coefficient of variation
2. Sports Corp has 11.4 million shares of common stock outstanding, 6.4 million shares of preferred stock outstanding, and 2.4 million bonds. If the common shares are selling for $26.4 per share, the preferred shares are selling for $13.9 per share, and the bonds are selling for 96.86 percent of par, what would be the weight used for equity in the computation of Sports's WACC?
56.44%
11.09%
33.33%
12.47%