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A) B) C) D) Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at
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Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $8000 and has 400 shares of stock outstanding. Board also has $8000 in assets and has $2000 in debt financed at an interest rate of 6.00% and has 300 shares of stock outstanding. Assume perfect capital markets. Calculate the level of EBIT that would make earnings per share the same for Ski and Board. S NOT include a comma Place your answer to the nearest dollar. If applicable, your answer should Adams operates his $42500 firm using his own equity. Bob operates his firm with $21250 of his own money plus $21250 of debt at a cost of 12 percent interest. Calculate Adams's and Bob's return on equity if their respective businesses produce earnings before interest and tax of $5500. Assume perfect markets. Adams's return on equity: Bob's return on equity % % Place your answer in percentage form with two decimal places. For example, an answer of eleven point five zero percent would be entered 11.50. Joe owns and operates Socccer Stores of America. He has $475000 of his own money in the business as equity capital, but because of the use of debt, the total value of his stores is $1000000. Calculate the percentage of debt in the corporation, and the corporation's leverage factor. Percentage of debt in the corporation= Place your answer in percentage form with two decimal places. The corporation's leverage factors Place your answer as a number with two decimal places MassNet Corporation has 6.65 million shares outstanding and debt with interest payments of $1.12 million. What earnings before interest and tax (EBIT) must the firm have if it were to provide $3 per share to the shareholders? Assume perfect markets. Answer: million Place your answer in milions of dollars with two decimal placesStep by Step Solution
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