Dickinson Company has $11,860,000 million in assets. Currently half of these assets are financed with long-term debt at 9.3 percent and half with common stock having a par value of $8. Ms. Park, Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 9.3 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so negative tax amounts are permissable.

Under Plan D, a $2,965,000 million long-term bond would be sold at an interest rate of 11.3 percent and 370,625 shares of stock would be purchased in the market at $8 per share and retired.

Under Plan E, 370,625 shares of stock would be sold at $8 per share and the $2,965,000 in proceeds would be used to reduce long-term debt.

a. Compute earnings per share considering the current plan and the two new plans.

Dickinson Company has $11,860,000 million In assets. Currently half of these assets are financed with long-term debt at 9.3 percent and half with common stock having a par value of $8. Ms. Park, Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 9.3 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so negatlve tax amounts are permissable. Under Plan D, a $2,965,000 million long-term bond would be sold at an Interest rate of 11.3 percent and 370,625 shares of stock would be purchased in the market at $8 per share and retired. Under Plan E, 370,625 shares of stock would be sold at $8 per share and the $2,965,000 in proceeds would be used to reduce longterm debt. a. Compute earnings per share considering the current plan and the two new plans. Note: Round your answers to 2 decimal places. b-1. Compute the earnings per share If return on assets fell to 4.65 percent. Note: Negatlve amounts should be Indlcated by a minus sign. Round your answers to 2 declmal places. Leave no cells blank be certain to enter 0 wherever required