Business, 20.12.2019 00:31 rickyortega72701

Consider two companies in a world with no taxes that are alike except in borrowing choices. company 1 has no debt financing, and company 2 uses debt financing. the ebit for both companies is $1,000. company 1 has 500 shares outstanding and pays no interest. company 2 has 300 shares outstanding and pays $250 in interest. what is the eps for each company? a. both companies have an eps of $2.00. b. both companies have an eps of $2.67. c. company 1 has an eps of $2.00 and company 2 has an eps of $2.50. d. company 1 has an eps of $2.00 and company 2 has an eps of $2.27.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 08:00

Who is not spending wisely? erika goes shopping and saves her receipts. she totals how much she spent and writes it down. mia needs to buy a new pair of shoes because she joined the soccer team. she looks at newspaper ads to find the best price. lauren has been thinking about getting a puppy for a long time. she walks by the pet store at the mall and decides to get a puppy. erin makes a purchase online using a credit card. she knows that she can pay the entire bill when it arrives.

Answers: 2

Answer

Business, 22.06.2019 10:10

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?

Answers: 3

Answer

Business, 22.06.2019 19:10

Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration

Answers: 1

Answer

Business, 22.06.2019 19:40

The martinez legal firm (mlf) recently acquired a smaller competitor, miller and associates, which specializes in issues not previously covered by mlf, such as land use and intellectual property cases. given the increase in the firm's size and complexity, it is likely that its internal transaction costs willa. decrease. b. increase. c. become external transaction costs. d. be eliminated.

Answers: 3

Answer

You know the right answer?

Consider two companies in a world with no taxes that are alike except in borrowing choices. company...

Questions

Engineering, 21.01.2020 06:31

Acapacitor is a two-terminal device that can store electric charge. in a linear capacitor, the amount of charge stored is proportional to the voltage...