Question
Capital Structure Analysis The Rivoli Company has no debt outstanding, and its financial position is given by the following data: Expected EBIT $600,000 Growth rate
Capital Structure Analysis
The Rivoli Company has no debt outstanding, and its financial position is given by the following data:
| Expected EBIT | $600,000 | |
| Growth rate in EBIT, gL | 0 | % |
| Cost of equity, rs | 10 | % |
| Shares outstanding, no | 100,000 | |
| Tax rate, T (federal-plus-state) | 25 | % |
Based on the new capital structure, what is the new stock price? Do not round intermediate calculations. Round your answer to the nearest cent.
$___
What is the remaining number of shares? Do not round intermediate calculations. Round your answer to the nearest whole number.
___shares
What is the new earnings per share? Do not round intermediate calculations. Round your answer to the nearest cent.
$___
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Project Finance In Construction
Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani
1st Edition
1444334778, 978-1444334777
