Debt ratio 25% 0.25 0.50 0.25 45000 110000 175000 4800 4800 4800 Debt ratio 35% 0.25 0.50 0.25 45000 110000 175000 10080 10080 10080 Debt ratio 55% 0.25 10.50 0.25 45000 110000 175000 19800 19800 19800 Probability EBIT Less interest (8%, 12, 15) Net profit before taxes Taxes 36% Net profit after taxes # of shares EPSI 40200 105200 170200 14472 37872 61262 34920 99920 12571 35971 164920 59371 25200 9072 90200 32472 155200 55872 25728 22500 1.14 67328 22500 2.99 108938 22500 4.84 22349 63949 19500 19500 1.15 3.28 105549 19500 5.41 16128 13500 1.19 57728 13500 4.28 99328 13500 7.36 5.98 Expected EPS 4.56 19.36 4.6 6.56 21.64 4.76 8.56 29.44 Sd of EPS Coefficient of Variation Coefficient of variation standard deviation/expected return Coefficient of variation of EPS 0.42 0.44 0.45 0.46 0.51 0.60 Required return 1496 16 18 21 23 25 STUCK ON SD and COEFFICIENT - CANT FIGURE IT OUT CANT FINISH THE PROBLEM WITHOUT IT Debt ratio 25% 0.25 0.50 0.25 45000 110000 175000 4800 4800 4800 Debt ratio 35% 0.25 0.50 0.25 45000 110000 175000 10080 10080 10080 Debt ratio 55% 0.25 10.50 0.25 45000 110000 175000 19800 19800 19800 Probability EBIT Less interest (8%, 12, 15) Net profit before taxes Taxes 36% Net profit after taxes # of shares EPSI 40200 105200 170200 14472 37872 61262 34920 99920 12571 35971 164920 59371 25200 9072 90200 32472 155200 55872 25728 22500 1.14 67328 22500 2.99 108938 22500 4.84 22349 63949 19500 19500 1.15 3.28 105549 19500 5.41 16128 13500 1.19 57728 13500 4.28 99328 13500 7.36 5.98 Expected EPS 4.56 19.36 4.6 6.56 21.64 4.76 8.56 29.44 Sd of EPS Coefficient of Variation Coefficient of variation standard deviation/expected return Coefficient of variation of EPS 0.42 0.44 0.45 0.46 0.51 0.60 Required return 1496 16 18 21 23 25 STUCK ON SD and COEFFICIENT - CANT FIGURE IT OUT CANT FINISH THE PROBLEM WITHOUT IT