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iogann1982 [59]
3 years ago
8

Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt.

Plan II would result in 8,700 shares of stock and $155,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $80,000. The all-equity plan would result in 18,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans
Business
1 answer:
posledela3 years ago
3 0

Answer:

Earnings per share (EPS) = (net income - preferred dividends) / average number of outstanding shares

EPS for all equity plan:

($80,000 x 60%) / 18,000 = $2.67 per share

EPS for Plan I:

[($80,000 - $5,000) x 60%] / 12,000 = $3.75 per share

EPS for Plan II:

[($80,000 - $7,750) x 60%] / 8,700 = $4.98 per share

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As we can see some other countries which face slowing down in 2008. They also made some deregulation in the economy. Japan is a developed economy and has greater potential.

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2 years ago
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Answer:

A . Should avoid social responsibility whenever it is possible to do so.

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3 years ago
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Answer:

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Explanation:

At December 31, 2017,

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Before adjusting, Allowance for Doubtful Accounts $3,000 credit. The company use aging method to estimate bad debts expense and Allowance for Doubtful Accounts. Bad debts expense amount will be record:

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Hunter-Best [27]

Answer:

focus on what its asking

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