User Account

All Pages

What is the eps for each company

Assignment Help Finance Basics
Reference no: EM13282801

Consider two companies that are alike except in borrowing choices. Company A has no debt financing and Company B uses debt financing. The EBIT for both companies is $100. Company A has 40 shares outstanding and pays no interest. Company B has 30 shares outstanding and pays $25 in interest. What is the EPS for each company?

Reference no: EM13282801

Questions Cloud

What is the cost of capital for theis project : The debt-equity ratio is .65 and the tax rate is 36 percent. What is the cost of capital for theis project?
What is the price of the stock now : The stock of Cacique Corp., is expected to have earnings per share (EPS) next year of $6 per share. The required return for its stock is 15%.
What is the temperature of the air inside the tires : When my car has been parked for a while, its tires look a wee bit ‘low,' and, when their pressure is measured at 23 C, What is the temperature of the air inside the tires
How many grams of phenol do need to add to make ssolution : Phenol is a weak organic acid with Ka=1.0x10^-10. How many grams of phenol do you need to add to 500. mL of water to make a pH=5.75 solution
What is the eps for each company : Company A has 40 shares outstanding and pays no interest. Company B has 30 shares outstanding and pays $25 in interest. What is the EPS for each company?
How to determine fe3+ in an unknown solution : To determine [Fe3+] in an unknown solution, 1.00 mL of the solution was diluted to 50.0 mL. After addition of excess SCN-, the absorption of the standard solution =0.193 at 580 nm. What is the [Fe3+]
What is the range of returns for large cap stocks : What is the range of returns for large cap stocks you would expect to see 95% of the time?
Explain a structure for an amine of formula c4h9n : propose a structure for an amine of formula C4H9N, which liberates a gas when treated with NaNO2 and HCl. The 13C NMR spectrum is as follows with attached protons in parentheses: delta 14 (2), delta 34.4(2), delta 50.0(1)
What is the new pressure of the gas in the smaller box : An amount of ideal gas is con?ned to a sealed box at one-half atmospheric pressure, i.e., 50.65 kPa. What is the new pressure of the gas in the smaller box

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate continuous compounding

Determine which amounts represents the end value of investing $80,000 for three years at a continuously compounded rate of 12 percent?

  What is time value of money

What is time value of money? Why is it important in finance? Discuss about different types of time value of money problems.

  Determine the npv at time period zero of the cash flows

Recall that this step determines the amount that could be deposited today, to satisfy the education funding need

  Calculate the current yield on this bond

What dollar amount of interest will he receive from this bond every six months? Explain or show work.

  Compute a fair rate of return for intel common stock

Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 16 percent.

  Compute the npv for project x with the cash flows

Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 9 percent. Time: 0 1 2 3 4 5 Cash flow: -80 -80 0 110 85 60

  What is this stock worth to you per share

After that, the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth to you per share if you demand a 10.8 percent rate of return on stocks of this type?

  What should the firm set as the required rate of return

What should the firm set as the required rate of return for the project? 15.39 percent 13.92 percent 12.54 percent 17.33 percent 17.06 percent

  Determination of company sustainable growth rate

The Steiben Company has a ROE of 8.5% and a payout ratio of 35%. Determine the company's sustainable growth rate.

  Compute the number of units transferred to finished goods

At the end of March, 40,000 additional units were in process in the production department and were 100% complete with respect to materials and 40% complete with respect to labor. Compute the number of units transferred to finished goods.

  What are the required rates of return on stocks c and d

If the risk-free rate is 9% and the expected rate of return on an average stock is 12%, what are the required rates of return on Stocks C and D? Round the answers to two decimal places.

  What is the aftertax salvage value of the asset

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,020,000 and will be sold for $1,220,000 at the end of the project. If the tax rate is 35 percent, what is the afterta..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd