Question
If a company has 100,000 shares outstanding at a price of $27 a share, its capital structure is 50% Debt and 50% Equity, the outstanding
If a company has 100,000 shares outstanding at a price of $27 a share, its capital structure is 50% Debt and 50% Equity, the outstanding debt has interest payments of 8%, and the operating income for this particular year is $400,000, what is the Earnings Per Share and the Return on Shares for this company.
- A. $3.22; 11.92%
- B. $1.72; 5.98%
- C. $2.92; 10.81%
- D. $1.84; 6.81%
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International Financial Management
Authors: Jeff Madura, Roland Fox
4th Edition
147372550X, 9781473725508
