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WARRIOR [948]
2 years ago
14

ound 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 160,000 shares of stock outstanding. Under Plan II, there would be 110,000 shares of stock outstanding and $1.4 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes. a. If EBIT is $400,000, what is the EPS for each plan
Business
1 answer:
noname [10]2 years ago
6 0

Answer:EPS of Plan I = $2.50

EPS of Plan II = $2.75

Explanation:

Plan I  Earning per share (EPS) = EBIT ÷ Number of shares

= $400,000 / 160,000 = $2.50

Plan II

Given that  

debt outstanding = $1.4 million and interest rate on debt is 7percent

Interest = $1,400,000 × 7% = $98,000

Plan II's EPS= (EBIT - Interest ) ÷ Number of shares

= ($400,000 - $98,000 )/  110,000

= 302,000/  110,000=2.75

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The ____ is an organization that has developed resource documentation for CSPs and their staff. It provides guidance for privacy
Tcecarenko [31]

Answer:

​Cloud Security Alliance

Explanation:

Cloud Security Alliance can be regarded as an organization that

is a not-for-profit one having a mission in raising best practices that provid security assurance in cloud computing as well as provision of education on how cloud computing can be used in

securing forms of computing. It should be noted that ​Cloud Security Alliance

is an organization that has developed resource documentation for CSPs and their staff. It provides guidance for privacy agreements, security measures, questionnaires, and more.

4 0
3 years ago
Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as: produc
Genrish500 [490]

Answer: location economies

Explanation:

location economies are economies which are birthed through performing a value creation activity in an optimal location for that activity wherever in the world it may be. It is used by firms to determine the competition in an environment when locating to do business

4 0
3 years ago
A customer has invested a total of $10,000 in a nonqualified deferred annuity through a payroll deduction plan offered by the sc
Blababa [14]

Answer:

On $6000 amount customer be taxed

Explanation:

given data

total invest = $10000

current value = $16000

to find out

On what amount customer be taxed

solution

we know customer is invest here total $10000 and

current value is now $16000

so we can say that here payment non qualified deferred, annuity  after tax

so tax are paid of earning

so earning =  current value - invest

earning = 16000 - 10000

earning = $6000

so on $6000 amount customer be taxed

3 0
3 years ago
Which payment option provides consistency in on-time bill payment? A) mailing a check B)making a payment by telephone C)submitti
NNADVOKAT [17]
D, because automatic withdrawal is a schedule payment that takes place without either party having to do a thing as long as the account covera the balance.
6 0
3 years ago
Read 2 more answers
In the "Case Nugget," Ziva Jewelry Inc., v. Car Wash Headquarters Inc., the plaintiff left his car and keys with a car wash empl
Olenka [21]

Answer:

That the car wash was not liable to the plaintiff because the car wash employees had no notice they were taking responsibility for so much jewelry.

Explanation:

The case of Ziva Jewelry Inc., v. Car Wash Headquarters Inc involved a salesperson Stewart who locked jewellery in his car and took it to the car wash.

He did not disclose that there was expensive jewelry in the car.

The attendant finished washing the car and signalled to Stewart that his car was ready and walked away from the car.

Before Stewart could pay the bill someone had taken the car. Although the police recovered the car the jewellery was stolen.

Zeva Jewellry filed a motion against the car wash that they did not excercise due care in returning the vehicle.

In this instance the car wash was not liable because Stewart did not disclose there was expensive jewelry in the car.

Also the attendant had finished with his car and informed him of this. So it was out of their care when the car theft occured

3 0
3 years ago
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