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Need help calculating Expected EPS, Standard Deviation of EPS, and Coefficient of variation of EPS in excel. (please show formulas in each cell). This is
Need help calculating Expected EPS, Standard Deviation of EPS, and Coefficient of variation of EPS in excel. (please show formulas in each cell).
This is a snippet taken from an official textbook solution found here on Chegg. I need help finding out how they got the answers 2.25, 1.14, and 0.51. Is there any way I can plug these formulas in excel? I am trying to work backwards to figure out how I can use the concepts of this solution to aid in my own work except I can't figure out how to plug the numbers into that formula.
Step 4 of 7 A Now we can calculate expected EPS, standard deviation of EPS, and the coefficient of variation of EPS for three proposed capital structure as follows: Debt ratio (20%) Debt ratio (40%) Probability (Pi) 0.2 0.6 0.2 0.2 0.6 0.2 | EBIT 20000 80000 140000 20000 80000 140000 Less: Interest | 5000 5000 5000 12000 12000 12000 Net profit before taxes 15000 75000 135000 8000 68000 128000 Taxes (T=0.4) 6000 30000 54000 3200 2720051200 Net profit after Taxes 9000 45000 81000 4800 40800 76800 Number of shares (M) 20000 20000 20000 15000 15000 15000 EPSI 0.45 2.25 4.05 0.32 2.72 5.12 Expected EPS E (EPS) = Pix EPSi 2.25 Standard Deviation of EPS 0= Pix(EPSI-E (EPS)) | Coefficient of variation of EPS E (EPS) CommentStep by Step Solution
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