Answered step by step
Verified Expert Solution
Question
1 Approved Answer
if you held shares in this company, explain why you would or would not wany to move to the proposed situation Particulars Assets (Debt +
if you held shares in this company, explain why you would or would not wany to move to the proposed situation
Particulars Assets (Debt + Equity) Debt Equity Total Current 30000 0 30000 30000 Prposed 30000 6000 24000 30000 Interest Rate Share Price No. of shares 5% 6 5000 5% 6 4000 Return on assets (EBIT / Assets) *100 EBIT Interest charged (Debt * Interest Rate) 13.333 4000 0 4000 13.333 13.333 4000 300 3700 15.417 EAT Return on Equity (EAT /Equity) * 100 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started