Business, 11.12.2019 20:31 kyrarix

Reliable gearing currently is all-equity-financed. it has 15,000 shares of equity outstanding, selling at $100 a share. the firm is considering a capital restructuring. the low-debt plan calls for a debt issue of $250,000 with the proceeds used to buy back stock. the high-debt plan would exchange $450,000 of debt for equity. the debt will pay an interest rate of 12%. the firm pays no taxes.

a.
what will be the debt-to-equity ratio if it borrows $250,000? (do not round intermediate calculations. round your answer to 2 decimal places.)

debt-to-equity ratio
b.
if earnings before interest and tax (ebit) are $160,000, what will be earnings per share (eps) if reliable borrows $250,000? (do not round intermediate calculations. round your answer to 2 decimal places.)

eps $

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 13:30

The chart shows the pricing history for two items. which person saved the most money by buying a product at the right time? carrie, who waited six months to buy a game system timothy, who bought a game system right away because it was popular eugene, who bought a phone immediately for fear they would sell out marlene, who waited six months to buy a phone

Answers: 3

Answer

Business, 22.06.2019 14:30

Which of the following is an example of a positive externality? a. promoting generic drugs would benefit people. b. a lower inflation rate would benefit most consumers. c. compulsory flu shots for all students prevents the spread of illness in the general public. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund.

Answers: 1

Answer

Business, 23.06.2019 08:00

Which sentence in the passage refers to the "analysis" of a given problem? jeremy is the production manager in a manafacturing company. he has identified a problem in the production process. he has estimated that the problem would lead to a loss of $10,000 and would require time to resolve. further, he has also identified the source of the problem to be the outdated machinery, which might require major repair, if not immediate replacement. finally, jeremy has also divided the problem into smaller parts, such as production costs, overheads, downtime expense, repair expenditure, and so on.

Answers: 2

Answer

Business, 24.06.2019 01:00

In a real-world environment, we must strike a balance between design integrity and robustness flexibility uniqueness ease of use

Answers: 3

Answer

You know the right answer?

Reliable gearing currently is all-equity-financed. it has 15,000 shares of equity outstanding, selli...

Questions

Business, 03.12.2020 05:00

The events leading up to the 2007 financial collapse are relevant since they show how the disaster took shape. Match each event from Column A with th...