DQuestion 19 s ptta Your (all equity) firm sells 35,000,000 units at $2.30 per unit, the variable cost per unit Is $1.84, and fixed costs are $6,500,000, giving your firm a DOL of 1.6771. The firm faces a tax rate of 40 percent and has 900,000 shares outstanding. Sales are expected to increase by 19 percent during the coming year. Glven this information, and assuming that there will be no change in total assets or the number of shares outstanding, calculate the expected EPS for the coming year. O $8.22 $8.44 $8.33 O $8.12 O $8.56 Question 20 5 pts Assume that your company Is an all-equity fim with 5,000,000 shares outstanding. The company's EBIT Is currently $20,000,000, and EBIT is expected to remain constant over time. The company pays out all of Its earnings each year; Its growth is zero, Its eamings per share equals Its di.idends per share, and the company's tax rate Is 40. The company is considering issuing $23.0 milion worth of bonds (at par) and using the proceeds for a stock repurchase. The firm's cost of this debt (thelr annual coupon rate) would be 6 percent. The risk-free rate in the economy is 4 percent, and the market risk premlum is 10 percent. The company's beta is currently 1.20, but its investment bankers estimate that the company's beta would rise to 1.30 If it proceeds with the recapitalization. Given this information, determine the difference between the final stock prices If the market does anticipate an increase in value versus it does not anticipate an increase in value. Enter your answer in dollars and cents, with no punctuation. For example, if you answer is $8.90, enter "8.90* For this problem, all M&M assumptions apply. The tax rate is 40%. a successful college football career, Tim Turbo partnered with Danny Vlaffle (naming themselves TD Industries) to manufacture and distribute frult ples. On 1/1/2018, the company had one product that generated EBIT of $666.666.67 on 12/31 af each year (forever). The firm has $671,500 in debt outstanding. The debt is perpetual, with an annual coupon rate equal to the risk-free rate. The firm has an asset beta of 1.3525 and an equlity beta of 1.50. At that time, the risk-free rate, RF, was 3 percent and the MRP was 5 percent. The firm had 100,000 shares outstanding, and all earnings were (and will always be) paid out as dividends on 12/31 of each year As you can calculate, using CAPM for equity required returns, the firm had a price / share of $36.94 On 1/2/2018 at 8:00 a.m. TD announced a new ple product The project will require the company spend $500,000 to purchase The Buckeye Grinder 2100, a buckeye mashing machine. For tax purposes, the machine will not be depreciated since it will last forever. No working capital is required. The project will increase the company's EBIT by $133,333.33 a year forever, starting on 12/31/2018 The project has an asset beta of 1.10 TD Industries also announced that it will issue $700,000 in new equity. $500,000 will be used to finance the new project. The balance will be used to retire debt at face value. When the market opened at 9:30a, the price had changed as expected, increasing to $40.56 per share. What was the equity beta after the entire transaction was complete? Enter your answer to two decimal places, truncated. For example, if your answer is 1.9558, enter "1.95