dete the Integrative Optimal capital structure Medalion Cooling Systems, Inc. has totales of $10.200.000, EBIT 51.900.000, and green dividence of $197.000 and is ved at of 80% in an effort optical struct, the massembled out on the cost of it, the number of wes of common stock for an evels of death and the overall sumont Capital structure Number of common Cast of debt dabrati des Required return 0% 195.000 121 15 172.000 122 NO 143 000 142 45 123 107 000 162 149 77.000 202 a. Cactus per she force of indeed Chethemeton Po EPS, and the perse calcited to calculate pe per sve for each level of indeed Debt Ratio 0% EBIT s 1,980,000 0 $ Less Interest EBT $ $ Taxes 40% Net profit 1.980.000 792.000 1,188,000 $ $ 1 188.000 Net profit Less: Preferred dividends Profits available to $ common stockholders $ =shares outstanding $ 195.000 EPS Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cent.) Debt Ratio 15% EBIT $ 1.980,000 Less Interest $ 1,980,000 EBIT Loss: Interest EBT $ $ $ Taxes 340% Net profit Less Proferred dividende $ $ $ $ Net profit Less: Preferred dividends Profits available to common stockholders #shares outstanding 5 $ 172,000 EPS Debt Ratio 30% $ 1.980,000 $ EBIT Less: Interest EBT Taxes 40% Net profit s $ $ V Urotec Net profit Less: Preferred dividends Profits available to $ common stockholders $ # shares outstanding $ 143,000 EPS Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cont.) Debt Ratio 45% 1,980,000 EBIT $ Less Interest S EBIT 1 980,000 S Less: Interest EBT $ Taxes @60% Net profit Less: Preferred $ $ Less Preferred dividends Prolits available to common stockholders #shares outstanding $ $ 107.000 EPS $ Debt Ratio 60% EBIT $ 1.980.000 Less: Interest $ EBT $ Taxes @40% Net profit $ $ Less: Preferred dividends Profits available to common stockholders $ #shares outstanding $ 77,000 EPS $ b. The price per share for the 0% level of indebtedness is $| (Round to the nearest cent.) The price per share for the 15% level of indebtedness is $ (Round to the nearest cent.) The price per share for the 30% level of indebtedness is $ (Round to the nearest cent.) The price per share for the 45% level of indebtedness is $|| (Round to the nearest cent.) The price per share for the 45% level of indebtedness is $ (Round to the nearest cent.) The price per share for the 60% level of indebtedness is $(Round to the nearest cent.) A. The optimal capital structure would be 15% debt and 85% equity because this is the debt/equity mix that maximizes the price of the common stock O B. The optimal capital structure would be 30% debt and 70% equity because this is the debt/equity mix that maximizes the price of the common stock OC. The optimal capital structure would be 60% debt and 40% equity because this is the debt/equity mix that maximizes the price of the common stock OD. The optimal capital structure would be 45% debt and 55% equity because this is the debt/equity mix that maximizes the price of the common stock dete the Integrative Optimal capital structure Medalion Cooling Systems, Inc. has totales of $10.200.000, EBIT 51.900.000, and green dividence of $197.000 and is ved at of 80% in an effort optical struct, the massembled out on the cost of it, the number of wes of common stock for an evels of death and the overall sumont Capital structure Number of common Cast of debt dabrati des Required return 0% 195.000 121 15 172.000 122 NO 143 000 142 45 123 107 000 162 149 77.000 202 a. Cactus per she force of indeed Chethemeton Po EPS, and the perse calcited to calculate pe per sve for each level of indeed Debt Ratio 0% EBIT s 1,980,000 0 $ Less Interest EBT $ $ Taxes 40% Net profit 1.980.000 792.000 1,188,000 $ $ 1 188.000 Net profit Less: Preferred dividends Profits available to $ common stockholders $ =shares outstanding $ 195.000 EPS Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cent.) Debt Ratio 15% EBIT $ 1.980,000 Less Interest $ 1,980,000 EBIT Loss: Interest EBT $ $ $ Taxes 340% Net profit Less Proferred dividende $ $ $ $ Net profit Less: Preferred dividends Profits available to common stockholders #shares outstanding 5 $ 172,000 EPS Debt Ratio 30% $ 1.980,000 $ EBIT Less: Interest EBT Taxes 40% Net profit s $ $ V Urotec Net profit Less: Preferred dividends Profits available to $ common stockholders $ # shares outstanding $ 143,000 EPS Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cont.) Debt Ratio 45% 1,980,000 EBIT $ Less Interest S EBIT 1 980,000 S Less: Interest EBT $ Taxes @60% Net profit Less: Preferred $ $ Less Preferred dividends Prolits available to common stockholders #shares outstanding $ $ 107.000 EPS $ Debt Ratio 60% EBIT $ 1.980.000 Less: Interest $ EBT $ Taxes @40% Net profit $ $ Less: Preferred dividends Profits available to common stockholders $ #shares outstanding $ 77,000 EPS $ b. The price per share for the 0% level of indebtedness is $| (Round to the nearest cent.) The price per share for the 15% level of indebtedness is $ (Round to the nearest cent.) The price per share for the 30% level of indebtedness is $ (Round to the nearest cent.) The price per share for the 45% level of indebtedness is $|| (Round to the nearest cent.) The price per share for the 45% level of indebtedness is $ (Round to the nearest cent.) The price per share for the 60% level of indebtedness is $(Round to the nearest cent.) A. The optimal capital structure would be 15% debt and 85% equity because this is the debt/equity mix that maximizes the price of the common stock O B. The optimal capital structure would be 30% debt and 70% equity because this is the debt/equity mix that maximizes the price of the common stock OC. The optimal capital structure would be 60% debt and 40% equity because this is the debt/equity mix that maximizes the price of the common stock OD. The optimal capital structure would be 45% debt and 55% equity because this is the debt/equity mix that maximizes the price of the common stock
