1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
leonid [27]
3 years ago
5

Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan

I, the company would have 180,000 shares of stock outstanding. Under Plan II, there would be 130,000 shares of stock outstanding and $2.6 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $575,000, what is the EPS for each plan
Business
1 answer:
asambeis [7]3 years ago
5 0

Answer:

EPS of Plan I = $3.19

EPS of Plan II = $2.82

Explanation:

Under Plan I:

Plan I's Earning per share (EPS) = EBIT ÷ Number of shares = $575,000 ÷ 180,000 = $3.19

Under Plan II:

Interest = $2,600,000 × 8% = $208,000

Earning after Interest = EBIT - Interest = $575,000 - $208,000 = $367,000

Plan II's EPS = $367,000 ÷ 130,000 = $2.82

You might be interested in
In addition to regular Alka-Seltzer, there is an Alka-Seltzer product for each of the following: cold sufferers, people with ups
Elza [17]

Answer:

Full line Strategy

Explanation:

The company that pursues full line strategy actually have a diversified product offerings within the business industry. Let consider the offerings of Toyota which produces a range of car products from a low price and quality car to excellent quality car products that are priced high. This helps them to target all the customer segments who are willing to buy a car from a lower class to upper class customers. Likewise in this case, the pharmaceutical company is trying to target maximum number of different customer segments who are the industry customer in which the company is operating.

7 0
3 years ago
To meet market needs companies sometimes change product names so that the name in the local language is culturally meaningful. T
Temka [501]

Answer: A Multi-Domestic

Explanation:

A MULTI-DOMESTIC strategy is a decentralized marketing strategy used by companies that are international to expand their market base in a country by encouraging local branches to establish their own marketing strategies that would cater for the country's unique needs, cultures, traditions and preferences.

Like Coca Cola in Iran for example will not have ads of women in bikinis being chilled by a cold Coca Cola bottle in the hot sun because that would go against codes of modesty in Iran.

5 0
4 years ago
Unemployment describes the condition where
Serggg [28]

Answer:

Unemployment is defined as a situation in which a person wants to be employed but is not able to get a job.

Explanation:

Option C is the correct answer that perfectly describes unemployment. it occurs when a person is willing to work but due to recession or bad economic conditions is unable to find a job. it is commonly encountered by those people, who are looking for job in high number but due to non availability of job are unemployed.

5 0
3 years ago
Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the f
Alisiya [41]

Answer:

D)

Explanation:

D) identify and evaluate opportunities by conducting segmentation, targeting, and opositioning analysis.

5 0
3 years ago
What is classical view
gregori [183]
Category is the default view in all modern versions of Windows. Selecting "Large icons" or "Small icons" is the equivalent of the classic list item view from Windows XP. ... The classic Windows XP list item view is now used by the Control Panel, regardless of whether you use Windows 7, Windows 8.1 or Windows 10
5 0
3 years ago
Other questions:
  • Suggest some personal traits of leaders you have known. What traits do you believe are most valuable? Why
    14·1 answer
  • Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $260,000,
    8·1 answer
  • Cellphone companies rely on the ___________ of conversation to make unlimited night and weekend minutes on cellphone plans profi
    6·1 answer
  • A company's board of directors votes to declare a cash dividend of $.75 per share of common stock. The company has 15,000 shares
    12·2 answers
  • Yes or yes? Do one hundred bills get shreded after they are ruined with wrinkles?
    8·1 answer
  • The term free trade can be best described as
    9·1 answer
  • Mike is buying a cake pan. Mike can spend up to $30. Mike finds a normal cake pan for $18 that he can use to cook cakes for many
    11·1 answer
  • Maura had to get a $350 emergency loan at a very high interest rate to pay for dental work. The lender did not need her credit h
    7·2 answers
  • A corporation had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of th
    13·1 answer
  • Can somone awnse r my math question in my questions on my profile caus im low in math
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!