![subject](/tpl/images/cats/ekonomika.png)
Business, 06.05.2021 15:20 jessicabestard0607
Monroe Inc. is an all-equity firm with 500,000 shares outstanding. It has $2,000,000 of EBIT, and EBIT is expected to remain constant in the future. The company pays out all of its earnings, so earnings per share (EPS) equal dividends per share (DPS), and its tax rate is 40%. The company is considering issuing $4,500,000 of 9.00% bonds and using the proceeds to repurchase stock. The risk-free rate is 4.5%, the market risk premium is 5.0%, and the firm's beta is currently 1.10. However, the CFO believes the beta would rise to 1.30 if the recapitalization occurs. Assuming the shares could be repurchased at the price that existed prior to the recapitalization.
Required:
What would the price per share be following the recapitalization?
a. $21.37
b. $28.49
c. $30.49
d. $34.76
e. $28.78
![ansver](/tpl/images/cats/User.png)
Answers: 3
Another question on Business
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 08:30
Most angel investors expect a return on investment of question options: 20% to 25% over 5 years. 15% to 20% over 5 years. 75% over 10 years. 100% over 5 years.
Answers: 1
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 10:00
Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a
Answers: 3
![question](/tpl/images/cats/ekonomika.png)
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 15:00
Ineed this asap miguel's boss asks him to distribute information to the entire staff about a mandatory meeting. in 1–2 sentences, describe what miguel should do.
Answers: 1
You know the right answer?
Monroe Inc. is an all-equity firm with 500,000 shares outstanding. It has $2,000,000 of EBIT, and EB...
Questions
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/istoriya.png)
History, 13.10.2020 06:01
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 13.10.2020 06:01
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 13.10.2020 06:01
![question](/tpl/images/cats/istoriya.png)
History, 13.10.2020 06:01
![question](/tpl/images/cats/mat.png)
Mathematics, 13.10.2020 06:01
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/obshestvoznanie.png)
Social Studies, 13.10.2020 06:01
![question](/tpl/images/cats/mat.png)
Mathematics, 13.10.2020 06:01
![question](/tpl/images/cats/mat.png)
Mathematics, 13.10.2020 06:01
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 13.10.2020 06:01
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 13.10.2020 06:01
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/pravo.png)
![question](/tpl/images/cats/mat.png)