Question
Oren Manis Berhad has a capital structure that consists of RM2 million of debt, and RM11 million of common equity, based upon current market values
Oren Manis Berhad has a capital structure that consists of RM2 million of debt, and RM11 million of common equity, based upon current market values from its 2,000,000 shares. The companys yield to maturity on its bonds is 7%, and investors require a 14% return on common stock.
- If Oren Manis Berhad were to generate an EBIT of RM15,000,000 this year, calculate the company earning per share (EPS) and its price per share (P0).
(3 Marks)
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
