YeeMee Berhad, a producer of instant noodles, is in this situation. = RM4.0 million = 25% EBIT Tax Rate Debt outstanding Kd Ks = 10% = 15% Share outstanding = 600000 Book value per share = RM10.00. RM2.0 million The company expects no growth, all earnings are paid out as dividends. The debt consists of perpetual bonds. Required: a) What are YeeMee's earnings per share (EPS) and its price per share (Po)? and What is YeeMee's weighted average cost of capital (WACC)?
YeeMee Berhad, a producer of instant noodles, is in this situation. = RM4.0 million = 25% EBIT Tax Rate Debt outstanding Kd Ks = 10% = 15% Share outstanding = 600000 Book value per share = RM10.00. RM2.0 million The company expects no growth, all earnings are paid out as dividends. The debt consists of perpetual bonds. Required: a) What are YeeMee's earnings per share (EPS) and its price per share (Po)? and What is YeeMee's weighted average cost of capital (WACC)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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