Question
Analyze the Recapitalization at Various Debt Levels and Determine the EPS and TIE at Each Level Amount D/Cap. D/E Borrowed Ratio Ratio Bond Rating
Analyze the Recapitalization at Various Debt Levels and Determine the EPS and TIE at Each Level Amount D/Cap. D/E Borrowed Ratio Ratio Bond Rating Id ('000) $ 0 0 0 250 0.125 0.143 AA 8.0% 500 0.250 0.333 A 9.0% 750 0.375 0.600 BBB 11.5% 1,000 0.500 1.000 BB 14.0% EBIT= $ 400,000, and tax rate= 40%. Current share outstanding = 80,000. Share price is $25 What do you observe? 13-
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
