Fresh out of harvard business school, john thompson, the new cfo of joe's southern cornbread company, wants to shake things up at the sleepy little food company headquartered in birmingham, alabama. the firm is currently an allminusequity firm because "that's the way we've always done it." under pressure from a new group of major stockholders, however, walker is considering acquiring some debt (leverage) in an effort to boost earnings per share. the company currently has 8000 shares of common stock outstanding, but he is thinking about borrowing $16,000 at 8% per year and buying back 2000 of those shares. john thompson is currently living in a world with no taxes. refer to the scenario above. if southern cornbread's ebit is $6,000, compare eps before and after the new debt.

Captain john's yachts, inc., located in fort lauderdale, florida, rents three types of ocean-going boats: sailboats, cabin cruisers, and captain john's favorite, the luxury yachts. captain john advertises his boats with his famous "you rent"we pilot" slogan, which means that the company supplies the captain and crew for each rented boat. each rented boat has one captain, of course, but the crew sizes (deck hands, galley hands, etc.) differ. the crew requirements, in addition to a captain, are one for sailboats, two for cabin cruisers, and three for yachts. ten employees are captains, and an additional 18 employees fill the various crew positions. currently, captain john has rental requests for all his boats: four sailboats, eight cabin cruisers, and three luxury yachts. if captain john's daily profit contribution is $50 for sailboats, $70 for cruisers, and $100 for luxury yachts, how many boats of each type should he rent?

Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.

What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?