1. The Whitehead Company has sales of $830,000, and the break-even point in sales dollars is $589,300. Determine the company's margin of safety as a percent of current sales. %

2. How much should you earn to justify the cost of your college education?

3. If you were to argue that the firm's cost of equity, rs, does not change as the dividend payout decreases, you would be making an argument ___________ with MM's dividend irrelevance theory, and ___________ with Gordon and Lintner's "bird-in-the-hand" theory