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Dickinson Company has $11,940,000 million in assets. Cumently haif of these assets are financed with long-berm debt at 9.7 percent and half with common stock

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Dickinson Company has $11,940,000 million in assets. Cumently haif of these assets are financed with long-berm debt at 9.7 percent and half with common stock having a par value of $8. Ms. Smith, Vice President of Finanoe, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company eams a retur on assets before inerest and tanes of 9.7 peroent. The tax rate is 40 perontTa oss camyower provisions apply, so negative tax amounts are pemissable Un er P n D, as2.se5,000 milion long-term bond would be scldat an inerest rato of 11.percent and 373.125 shares of stock would be puroasad nthe market at saper share and introd Under Plan E, 373,125 shares of stock would be sold at $8 per share and the $2,985,000 in proceeds would be used to reduce long-term debt a How would each of these plans affect earnings per share? Consider the current plan and the two new plans (Round your answers to 2 decimal places Current PianPian D Pian E Eamings per share b4Compute the oamings per share if rotun on assets foll to 485 peoenL (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places Current Pian Pian D Plan E Eaniny per share -2, which plan would be most favorablo-oham on assets fall to 4 85 perem? Consider the current plan w d the two, new plans. Cumant Plan Pian E b-3. Compute the eamings per shane if retum on assets inoressed to 14.7 percent. (Round your answers to 2 decimal places) Current Pian Pian D Plian t Earminga per share

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