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ABC company is thinking to change the capital structure of the firm. The Company has a total asset of OMR 40,000,000, and OMR 8,500,000 of

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ABC company is thinking to change the capital structure of the firm. The Company has a total asset of OMR 40,000,000, and OMR 8,500,000 of EBIT and is taxed at a rate of 40%. a. If the book value per share is OMR 20 Complete the following table (1.5 marks) b. For each level of debenture, find the total debt and interest amount. (1.5 marks) C. Based on your answer in parts a and b and the information given in the question, Find earnings per share (EPS) at each level of the debenture. (1.5 marks) d. Based on your answer in part c and given estimates of required return (Ke) in the table below. Find the value per share at various levels of the debenture. ( 1.5 marks) d. Based on your answer in part c and given estimates of required return (Ke) in the table below. Find the value per share at various levels of the debenture. (1.5 marks) Doht \% EDCIOMRIKa\% DO (OMR) e. Based on your analysis, which debenture level do you recommend? Explain your answer (2 mark) ABC company is thinking to change the capital structure of the firm. The Company has a total asset of OMR 40,000,000, and OMR 8,500,000 of EBIT and is taxed at a rate of 40%. a. If the book value per share is OMR 20 Complete the following table (1.5 marks) b. For each level of debenture, find the total debt and interest amount. (1.5 marks) C. Based on your answer in parts a and b and the information given in the question, Find earnings per share (EPS) at each level of the debenture. (1.5 marks) d. Based on your answer in part c and given estimates of required return (Ke) in the table below. Find the value per share at various levels of the debenture. ( 1.5 marks) d. Based on your answer in part c and given estimates of required return (Ke) in the table below. Find the value per share at various levels of the debenture. (1.5 marks) Doht \% EDCIOMRIKa\% DO (OMR) e. Based on your analysis, which debenture level do you recommend? Explain your answer (2 mark)

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