EBITlong dash—EPS
and capital structure????Data-Check is
considering two capital structures. The key information is shown in...
EBITlong dash—EPS
and capital structure????Data-Check is
considering two capital structures. The key information is shown in
the following table. Assume a
40 %40%
tax rate.
Source of capital
Structure A
Structure B
?Long-term debt
$97,000
at
15.2%
coupon rate
$194,000
at
16.2%
coupon rate
Common stock
4,600
shares
2,300
shares
a. Calculate two ?EBIT-EPS coordinates
for each of the structures by selecting any two EBIT values and
finding their associated EPS values.
b. Plot the two capital structures on a...
Six Data Tables (A, B, C, D, E, F) are shown
below.
For each Table, decide...
Six Data Tables (A, B, C, D, E, F) are shown
below.
For each Table, decide which of two methods (table
only or equation, graph, or
table) can be used to represent the data.
For the purposes of this question, assume that we only know and
can use two graph forms / equations:
x= c t + d (straight line graph)
and x = b t2+ c t + d (quadratic
curve graph).
A
t
x
0
4...
EBIT—EPS and capital structure Data-Check is considering two
capital structures. The key information is shown in...
EBIT—EPS and capital structure Data-Check is considering two
capital structures. The key information is shown in the following
table. Assume a 40% tax rate.
Source of capital
Structure A
Structure B
Long-term debt
$99,000
at
15.9%
coupon rate
$198,000
at
16.9%
coupon rate
Common stock
4,800
shares
2,400
shares
a. Calculate two EBIT-EPS coordinates for each of the
structures by selecting any two EBIT values and finding their
associated EPS values.
b. Plot the two capital structures on a set...
A thumbs up will be given:
Table 1
t
A
B
C
D
0
(14,900,000)...
A thumbs up will be given:
Table 1
t
A
B
C
D
0
(14,900,000)
(17,900,000)
(16,600,000)
(19,700,000)
1
4,980,000
5,990,000
3,850,000
6,400,000
2
4,980,000
6,210,000
4,990,000
5,880,000
3
4,510,000
6,250,000
6,860,000
6,800,000
4
4,510,000
4,700,000
4,990,000
6,650,000
Risk
High
Average
Low
Average
Table 1 shows the expected after-tax operating cash flows for
each project. All projects are expected to...