Mansker Station Corporation has declared an annual dividend of $0.80 per share. For the year just ended, earnings were $6.40 per share. Suppose Mansker Station has 7 million shares outstanding. Borrowing for the coming year is planned at $18 million. What target capital structure is implicit in these calculations?

Financial Management: Theory & Practice
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Chapter7: Corporate Valuation And Stock Valuation
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Mansker Station Corporation has declared an annual dividend of $0.80 per share. For the
year just ended, earnings were $6.40 per share.
Suppose Mansker Station has 7 million shares outstanding. Borrowing for the coming year
is planned at $18 million. What target capital structure is implicit in these calculations?
Transcribed Image Text:Mansker Station Corporation has declared an annual dividend of $0.80 per share. For the year just ended, earnings were $6.40 per share. Suppose Mansker Station has 7 million shares outstanding. Borrowing for the coming year is planned at $18 million. What target capital structure is implicit in these calculations?
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