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
andrew11 [14]
3 years ago
8

Franklin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Un

der Plan I, the company would have 170,000 shares of stock outstanding. Under Plan II, there would be 120,000 shares of stock outstanding and $2.21 million in debt outstanding. The interest rate on the debt is 7 percent and there are no taxes.
If EBIT is $450,000, what is the EPS for each plan?
Business
1 answer:
Ugo [173]3 years ago
3 0

Answer:

The answer is given below;

Explanation:

Plan  II    EPS=Net Income/Weighted Average shares outstanding

                    =$450,000-(2,210,000*7%)/120,000=$2.46

Plan I    =$450,000/170,000=$2.64

You might be interested in
You borrow $2,500. you are to pay back the loan in 36 monthly payments of $79.50. what true annual interest are you paying to th
Pepsi [2]

Answer:

4.8%

Explanation:

36months*$79.50=$2862

$2862-borrowed 2,500=362

362/3 years=$120 2/3

this means that the interest is 120 2/3 /2500, which is 0.048266, or 4.82, or in your case 4.8%

4 0
3 years ago
Read 2 more answers
Type the correct answer in the box. Spell all words correctly. What is the first step taken by the management team in any indust
jarptica [38.1K]

Answer:

plan

Explanation:

planning is the first step,for every business to succeed there must be planning

4 0
3 years ago
Describe a product, and then give an example of a time when the demand for this product might be high and the demand for this pr
d1i1m1o1n [39]
An inner tube for a swimming pool would be in high demand during the summer months, and in incredibly low demand in the winter months. 
7 0
3 years ago
Mexico-based Rodriguez Engineering Corp. requires host-country nationals to be recruited to manage subsidiaries, while parent-co
GREYUIT [131]

Answer: Polycentric approach

Explanation:

A polycentric staffing policy is a form of staffing policy whereby the nationals of the host countries will be recruited and employed to helps manage the subsidiaries that are in their own country while the nationals of the parent countries will have to occupy th key positions that are available at th corporate headquarters.

This is the kind of approach that is used by Mexico-based Rodriguez Engineering Corporations in the question.

8 0
3 years ago
Choose all that apply.
lana [24]
I would recommend a savings account
7 0
3 years ago
Other questions:
  • Heidi, the founder of Camp Bow Wow, proves herself to be a leader as she asks her employees for suggestions and inputs before ma
    14·1 answer
  • GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $72,000 for 6-months services in adv
    11·1 answer
  • ​Jessica's job as the director of the humane shelter is exhausting and can be heartbreaking at​ times, but she loves her job bec
    7·1 answer
  • You get a part-time job through an employment service. The service charges you ten percent of your first week's pay as payment f
    9·2 answers
  • Write 15 sentences paragraph on yur favorite book​,film or documentary
    6·2 answers
  • According to the textbook readings, If gross sales for the shoe department for spring were $2,675,000 and the reductions taken w
    15·1 answer
  • Mark, the sales manager at Lance Motors has called for a meeting with all his sales representatives. He wants to give them feedb
    14·1 answer
  • An example of a foundational, career exploration, and planning Supervised Agricultural Experience activity is: *
    5·1 answer
  • Assume you decide you should invest at least part of your money in large-capitalization stocks of companies based in the United
    7·1 answer
  • The scientific revolution established new methods of investigating the world, including?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!