i need the answer quickly Top management of Crane company is considering two alternative capital structures for 2027. The first (the "no debt" structure)would be to have $1,020,000 in assets and $1,020,000 in stockholders' equity, with 39,000 shares outstanding the entire year. This isthe structure the company had on December 31, 2026. Alternatively, on January 1, 2027, the company could issue $370,000 in debtat 6% interest (the "with debt" structure) and immediately use the proceeds to repurchase 19,500 shares of stock for $390,000. Theexpected amount of net income (ignoring taxes), prior to any interest costs, is $102,000 for 2027.Assume the company pays dividends on common stock equal to its net income each year. Also, assume the accrued interest on thedebt was paid at December 31, 2027, and the company has no other debt outstanding at year-end.Also, assume the company has $1,020,000 in assets at both the beginning and the end of 2027.(a)Compute the company's net income and earnings per share under both structures. (Ignore income taxes in your computations.)(Round earnings per share to 2 decimal places, e.g. 2.66.)eTextbook and MediaSave for Later2026$$$$$$2027Attempts: unlimited Submit Answer

Earning per share:The earning per share is popularly known in short as the EPS which means the…

Answered: (a) Compute the company's net income…

(a) Compute the company's net income and earnings per share under both structures. (Ignore income taxes in your computations.) (Round earnings per share to 2 decimal places, e.g. 2.66.) 2026 $ $ 2027

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 17P

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