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give correct calculation using formula and give fast There are two alternatives of capital structure available for the firm, one is to have $500,000 equity
give correct calculation using formula and give fast
There are two alternatives of capital structure available for the firm, one is to have $500,000 equity share capital and 11% debentures of $300,000. The other alternative is to have equity share capital of $400,000;13% preference share capital of $200,000; and 11% debentures of $300,000. The tax rate is 30% and the par value per equity share is $10. Calculate the earnings before interest and taxes at which earnings per share is indifferent among the above alternativesStep by Step Solution
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