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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

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atroni [7]

Complete Question:

Developing the ability to solve problems can help you.

The first step you should take is to

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Group of answer choices

a. advance in your career.

b. create.

c. become more ethics.

d. identify.

e. change your values.

f. ignore

Answer:

d. identify

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

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<em>Hence, the first step you should take is to identify the problem and then solve it.</em>

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3 years ago
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Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
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Answer:

gay

Explanation:

8 0
3 years ago
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shepuryov [24]

the answer is b:) because high interest rates mean increased cost for all the others since it is not a fixed cost for them

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Brian recently had to have minor surgery that cost him $3,000. He used the $2,300 remaining in his HSA but will pay the rest out
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4 0
2 years ago
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Answer:

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Therefore using the formula for PV for annuity;

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