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Hello, I am looking to validate my calculations on this problem. Thank you. Mary owns a floral and gift shop valued at $150,000. If she
Hello, I am looking to validate my calculations on this problem.
Thank you.
Mary owns a floral and gift shop valued at $150,000. If she keeps the shop open 5 days a week! EBIT is $75,000. If the shop remains open 6 days a week EBIT increases to $92,000 annually. Mary needs an additional $50,000 which she can raise by either selling stock or issuing debt at an interest rate of 7 percent. Ignore taxes. What will the cash flow for the year be to Mary if she issues stock and remains open 6 days a week? O O $92,000 $61,333 $92,000 $42,000 $69,000 References
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