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Hancock Corp has the following operating results and capital structure. The firm is contemplating a capital restructuring to 60% debt. Its stock is currently selling
Hancock Corp has the following operating results and capital structure. The firm is contemplating a capital restructuring to 60% debt. Its stock is currently selling for book value at exist25 per share. The interest rate is 9%, and combined state and federal taxes are 42%. Show all of your calculation work and label all of your work so can follow your calculation process. Complete current income statement and balance sheet and income statement under proposed capital structure. Calculate EPS under the current and proposed capital structures. Calculate the DFL under both structures
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