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1. Following the instructions in the discussion for this case, enter the following data for each level of debt, including 0%, 20%, 40% and 60%

1. Following the instructions in the discussion for this case, enter the following data for each level of debt, including 0%, 20%, 40% and 60% leverage.

Debt-to-Capital Ratio

0%

20%

40%

60%

Earnings per share

2.88

Dividends per share

.85

Book value per share

780.1

Return on assets

10%

Return on equity

12.5%

Interest coverage

0

Stock price at P/E ratio of 14.47

41.67

Break-even P/E ratio for stock price of $41.67

14.47

Dividend yield at stock price of $41.67

2.04

Price at dividend yield of 2.04%

41.67

Present value of debt tax shield

0

Earnings available to security holders

97.60

Change from actual

0

Cash payments to security holders

28.80

Change from actual

0

Income taxes, change from actual

53.7, 0

Impact on net income from a 10% reduction in EBIT

-9.76

Impact on net income from a 20% reduction in EBIT

-19.52

Internal growth rate at 30% payout ratio

7.527%

If there is missing information could you please still post the equation to find the answer

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