Question
Complete the EPS/EBIT Analysis for the XYZ Company by determining the EPS based on the following: a. 100% Debt financing b. 100% Stock financing c.
Complete the EPS/EBIT Analysis for the XYZ Company by determining the EPS based on the following:
a. 100% Debt financing
b. 100% Stock financing
c. 50/50 Debt/Stock Combination
| Input Data | The Number |
| Amount of capital needed | $75 million |
| EBIT | 15 million |
| Interest Rate | 6 percent |
| Tax Rate | 20 percent |
| Stock Price | $75 |
| #Shares outstanding | 250 million |
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Venture capital and the finance of innovation
Authors: Andrew Metrick
2nd Edition
9781118137888, 470454709, 1118137884, 978-0470454701
