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kondor19780726 [428]
3 years ago
13

Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, EBIT, are projec

ted to be $14,300 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 35 percent lower. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Assume the company has a tax rate of 21 percent
a-1. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
a- Calculate the percentage changes in EPS when the economy expands or enters a 2. recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)
b-1.Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b- Calculate the percentage changes in EPS when the economy expands or enters a 2. recession assuming recapitalization has occurred.

Business
1 answer:
Troyanec [42]3 years ago
5 0

Answer:

Please see attached.

Explanation:

a. Calculate earnings per share EPS under each of the three economic scenarios

a.2 Calculate the percentage changes in earnings per share EPS for economic expansion, or recession.

b-i calculate economic per share EPS, under each of the three economic scenarios after recapitalisation.

b-2 calculate the percentage changes in EPS when the economy enters or expand a recession assuming no recapitalisation occurred.

Please find attached detailed solution to the above questions.

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customer service motive

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Answer:

The adjusting entry needed on December 31 is:

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The adjusting entry needed on December 31 is:

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7 0
3 years ago
The following are some changes that may take place in the market for textbooks. For each of the following, indicate what will ha
Butoxors [25]

The demand curve will shift right.

(b.)The supply curve will shift right.

(c.)The demand curve will shift left

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(e.)The demand curve will shift left.

The demand curve is a graphical depiction of the connection between the cost of a commodity or service and the amount demanded over a specific time period. A common representation will have the price on the left-hand vertical axis and the amount needed on the right-hand horizontal axis. The law of demand states that, when all other factors are equal, the quantity demanded for a given good will decrease as its price rises as shown by the demand curve moving from left to right. Keep in mind that this formulation suggests that quantity is the dependent variable and price the independent variable. The independent variable often appears on the horizontal axis, or x-axis, although economics is an exception.

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1 year ago
A client has created a budget based on their customer, Lou's Luggage. They want a report that shows actuals versus budget for th
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1. Filter by Paid status

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Explanation:

Getting to Lou's luggage customer reports requires drilling down to the specifics. the system will give the reports by following the steps below.

2. Select Lou's Luggage budget

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4 0
3 years ago
Suppose you deposit $2,262.00 into an account today. In 11.00 years the account is worth $3,855.00. The account earned ____% per
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THUS,

The account earned 4.97 % per year.

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