Assume the following facts about a company: Capital (000's) EBIT (000's) $1,000 Debt - Less Interest Expense - Equity $3,000 EBT $1,000 Total Capital $3,000 Taxes @ 40% 400 Shares @ $10 = 300 Earnings after Tax $ 600 What will be the company's new EPS if it borrows money at 10% interest and uses it to retire stock until capital is 40% debt? The stock can be purchased at its book value of $10 per share.

Assume the following facts about a company: Capital (000's) EBIT (000's) $1,000 Debt - Less Interest Expense - Equity $3,000 EBT $1,000 Total Capital $3,000 Taxes @ 40% 400 Shares @ $10 = 300 Earnings after Tax $ 600 What will be the company's new EPS if it borrows money at 10% interest and uses it to retire stock until capital is 40% debt? The stock can be purchased at its book value of $10 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are analysis Sasol stock and you have gathered the information in the table below. If the net debt of the firm increased by R20 million, what is the approximate FCFE? FCFF Interest after tax Tax rate FCFE growth Cost of equity R198m R15m 35% 3% 14% R1,950 R2,497 R203 R188.25 R208.25
Give typing answer otherwise I'll give you downward
Ef 384.
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Assume ABC Corporation is a multinational company with the following financial information: Market value of equity (E): $500 million Market value of debt (D): $300 million Market value of preferred stock (PS): $50 million Cost of equity (Re): 10% Cost of debt (BTrd): 5% Corporate tax rate (Tc): 25% Cost of preferred stock ( Rps): 8% a. Calculate the WACC for ABC Corporation. Needs to be done in Excel
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bartleby, a Learneo, Inc. business

Capital (000's)		EBIT (000's)	$1,000
Debt	-	Less Interest Expense	-
Equity	$3,000	EBT	$1,000
Total Capital	$3,000	Taxes @ 40%	400
Shares @ $10 = 300		Earnings after Tax	$ 600