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2) All is as in problem1. Now suppose ROA next year turns out to be 10%. Fill in the BLANKS. Package1 Package2 Package3 Assets (mill)
2) All is as in problem1. Now suppose ROA next year turns out to be 10%. Fill in the BLANKS.
Package1 | Package2 | Package3 | |
Assets (mill) | $40 | $40 | $40 |
Debt | $10 | ||
Equity | $20 | ||
Number of shares (mill) | |||
Debt/Equity Ratio | 33% | ||
Package1 | Package2 | Package3 | |
Operating Earn. (mill) | $4 | ||
Interest expense (mill) | $2 | ||
Earnings for owners (mill) | $4 | ||
Number of shares (mill) | 2 | 1,5 | 1 |
Earnings per share | $2 | $1,33 | $0 |
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