Current Capital Structure: No DebtRecessior ExpectedABсDEFGH1CurrentProposed2 Assets3 Debt$1,000,000$1,000,000$0$800,000EBIT$700,0004 Equity$1,000,000$200,0005 Debt/Equity Ratic046 Share Price7 Shares Outstandi$4250,000$450,0008 Interest rateN/A10%91011 a) Calculate the Interest, Net income, ROE, and EPS for the current and proposed capital structure.12 b) Calculate the Breakeven EBIT.13KMNProposed Capital Structure: Debt = $800,000Recession Expected Expansion$700,000 $1,400,000 $2,100,000$1,400,000Expansion$2,100,000EBIT

a) EPS (Earnings Per Share)Current Capital Structure:For the current capital structure, there's no…

Answered: Current Capital Structure: No Debt…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The company capital structure consists of debt 250000 at 0.076, preferred stock 230000 at 11% and common stock 120000 at 14%, calculate company's weighted average cost of capital Select one: O a. 0.0737 O b. All the given choices are not correct O c. 0.0316 O d. 0.0596 O e. 0.1017
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The company capital structure consist of debt 380000 @ 4.05%, common stock 220000@12.09% and preferred stock 400000 @ 19.50%, calculate company's weighted average cost of capital Select one: O a. 12.99% O b. 11% O c. 9.50% O d. None O e. 11.99%
How to solve Profit/ loss For The Period And issued capital And EPS & P/E
The company capital structure consists of debt 250000 at 0.084, preferred stock 230000 at 11% and common stock 120,000 at 14%, calculate a company's weighted average cost of capital Select one: O a. 0.1051 O b. 0.0629 OC 0.0771 d. 0.0349 e. All the given choices are not correct
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Q39. Balance Sheet had the following amounts as at 31st March, 2019: $ Current Assets 10% Preference Share Capital Equity Share Capital 5,00,000 15,00,000 Current Liabilities Securities Premium Reserve Reserve and Surplus 1,00,000 Investments (in other companies) 4,00,000 Fixed Assets -Cots 30,00,000 Depreciation Written off Long-term from IDBI @ 9% Calculate ratios indicating the long-term and the Short-term financial position of the company. $ 12,00,000 8,00,000 2,00,000 60,00,000 14,00,000
Please help prepare Financial position and comprehensive income statement
The company capital structure consist of debt 340000 @ 4.05%, common stock 40% of preferred stock @ 9.09% and preferred stock 400000 @ 19.50%, calculate company’s weighted average cost of capital. Select one: a. 12.50% b. 11.79% c. 14.98% d. None of the option e. 13.15%
Pompey Inc. Carries the following marketable equity
Proposed Current $6,000,000 $6,000,000 $500,000 $5,500,000 $5,000,000 Assets Debt $1,000,000 Equity Debt/Equity Ratio Share Price, Shares 0.09 0.20 $15 $15 366,667 333,333 Outstanding Interest rate 10.8333% 10.8333% EBIT Interest Net Income ROE EPS $1,000,000 $1,000,000 $54,167 $945,833 17.20% $2.58 $108,333 $891,667 17.83% $2.68 Your firm is considering moving from the current capital structure to the proposed capital structure, replacing $500,000 in equity by increasing debt by $500,000, because with EBIT of $1,000,000 the EPS is greater ($2.68, instead of $2.58). a) What is the breakeven EBIT between the current and proposed capital structures? b) What is the EPS at the breakeven EBIT (rounded to two decimal places)? ) With EBIT above the breakeven amount, which of the capital structures would be preferred?
ABC Company provided the following information on December 31, 2020Share capital 5,000,000Subscribed share capital 3,000,000Subscription receivable 2,000,000Share premium 1,500,000Treasury Shares, at cost 700,000Retained Earnings 1,000,000Cumulative unrealized gain on Financial Asset at FVOCI 600,000What is the contributed capital on December 31, 2020?

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