Question
E-7 The capital structure for Cain Supplies is: Cain Supplies Debt @ 9% $ 280,000 Common stock, $10 par 560,000 Total $ 840,000 Common shares
E-7
The capital structure for Cain Supplies is:
| Cain Supplies | ||
| Debt @ 9% | $ | 280,000 |
| Common stock, $10 par | 560,000 | |
| Total | $ | 840,000 |
| Common shares | 56,000 |
Compute the stock price for Cain if it sells at 19 times earnings per share and EBIT is $86,000. The tax rate is 20 percent.(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
