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Homework: Chapter 12 Homework Score: 0 of 1 pt 5 of 7 (4 complete) HW Score: 41.07%, 288 of 7 pts x P12-24 (similar to)

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Homework: Chapter 12 Homework Score: 0 of 1 pt 5 of 7 (4 complete) HW Score: 41.07%, 288 of 7 pts x P12-24 (similar to) EQueston Help Integrative optimal capital structure Medanon cooling systems, Inc has total assets ofs10300 000 EBIT ors1 000 and pretenedavdends ata sale of 40% In an efort to determine the optmal structure the has assembled data on the cost of number of shares orcommon stock forvanous levels of ndebtedness, and the overal requred return on nvestment Capital structure debt ratio cost of debt r Number of common stock shares Required return r, 197,000 15 175.000 131 BB 138.000 139 122 115,000 198 Calculate earnings per share for each level of b. Use the equation Po EPs/r, and the ear 1,000,000 Taxes a4on. Less Preferred dividends s common stockholders s 97 000 Enter any number inthe edt folds and then click Check Answer ALIENWARE F6

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