The CFO of Yang Centers has asked you to calculate the EPS if the company were to change its capital structure from 0 percent debt to 90 percent debt. Calculate the EPS, rounded to the nearest $ 0.01, given the following information: Book value per share $ 8.75 Cost of debt 10 percent EBIT S 500,000.00 Tax Rate 30 percent Total Capital $ 4,000,000.00

The CFO of Yang Centers has asked you to calculate the EPS if the company were to change its capital structure from 0 percent debt to 90 percent debt. Calculate the EPS, rounded to the nearest $ 0.01, given the following information: Book value per share $ 8.75 Cost of debt 10 percent EBIT S 500,000.00 Tax Rate 30 percent Total Capital $ 4,000,000.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 6P

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