Question
McDurham has sales of $400 million. Fixed operating costs are $95 million, and the variable cost ratio is 45 percent. McDurham has outstanding a $100
McDurham has sales of $400 million. Fixed operating costs are $95 million, and the variable cost ratio is 45 percent. McDurham has outstanding a $100 million, 11 percent bank loan and $130 million in 12 percent coupon-rate bonds. McDurham has outstanding 250,000 shares of preferred stock with a $7 dividend and 10 million shares of common stock. McDurhams tax rate is 35 percent. Forecast McDurhams EPS if sales drop to $380 million.
5.83
5.68
5.51
5.12
Please answer this question asap please. I really need help because I am confused on how to solve this question. Thanks.
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