please answer all parts at the top. thank you.
IntegrativeOptimal capital structureThe board of directors of Morales Publishing, Inc., has commissioned a capital structure study. The company has total assets of . It has earnings before interest and taxes of and is taxed at a rate of .
a. Create a spreadsheet showing values of debt and equity as well as the total number of shares, assuming a book value of per share.
b. Given the before-tax cost of debt at various levels of indebtedness, calculate the yearly interest expenses.
c. Using EBIT of , a tax rate, and the information developed in parts (a) and (b), calculate the most likely earnings per share for the firm at various levels of indebtedness. Mark the level of indebtedness that maximizes EPS.
d. Using the EPS developed in part (c), the estimates of required return, and the equation , estimate the value per share at various levels of indebtedness. Mark the level of indebtedness in the following table that results in the maximum price per share, .
e. Prepare a recommendation to the board of directors of Morales Publishing that specifies the degree of indebtedness that will accomplish the firm's goal of optimizing shareholder wealth. Use your findings in parts (a) through (d) to justify your recommendation.
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Part 1
a. Create a spreadsheet showing values of debt and equity as well as the total number of shares, assuming a book value of per share.
Calculation of the values of debt and equity as well as the total number of shares below:(Round to the nearest dollar. Round the number of shares to the nearest integer.)
% Debt
Total Assets
Debt
Equity
No. of Shares
0%
$
39,200,000
$
0
$
39200000
Integrativa Optimal capital wiructure The Beard et Sitecton of Morales Publishing, Inc., a commisioned a capital tuturo say. The company has total was of 1.200.000 nhan caninge before heront and teos $7.260.000 sedef 24% 2. Ce spreadshest showing on foot and equity was the total controls, uning a book value of $25 portare 6. Oliven the before-tax cost of contatous levels of nettedesco the yearly interesteren a. Using or of 87.000.000, 2. sal, and a Womaton deleged partem and (w.calculate the most truly earning per here for me fem at veroors Mannerhes That TS EPS 4. Using the deeped in particulo requieren, and the equation PEP8//thesuperhero a vario validate. Max level onderdress in the following the atten cer, Proposta de teste toard of director of Mori Pabloting down or he will come the firepower wan u you findron pune www show often wel het beror where Cound for the wholown to the future Salut Tolle Debit Hoof Share 1 1,200.000 Homework: Homework 6 Part of 30 O Point of 4 Integrative Optimal capital structure The board of directors of Monte Publishing, Inc. has comissioned a capsuly. The compra 200.000 tras entre le stand 6.000 und taxed Marae of 24% Create a prendohet showroom of Gott and equity as well as the total number of res, muring Book Value of 125 per share Given the before tax cost of debeat various levels of indebtedness, call the yearly interese Using EBIT 37,960.000 a 24%, and the information developed in parts and call the mostly in perware for the warundet eneste EPS. dus EPS developed in parte) e stines of red return theaton, EPS/ restre e per le at various of deeds. Moreovel of one in the um pricepershan, Po .. Prepare a recommendation to the board of director of Morsies Publishing that specifies the degree strede but will compliances an. Uw your ideas para trato atry you recommendation Create a pret showing out of it and it as well as the wheel hook of $25 per Calculation of the values of and outy well as the tomber of shares below found to the rest of Randers to the nearest) Det Total Assets Det Easy Ne of Shares 5 99 200 000 $ Istaw tegrational capital structure. The board of directora u Morate ning he has comment acheter une stay the core el mes et 10.200.000 har erwartete e .. Crash shown was found out as well. 35 Giacomo no Wish, can yowy step ng BTS..000,024 takte de Woondeco in parte de la mort Bayanings per the man worden Ungepet spandekas PS/ VW / Monter msimum price versare P Promotion the board of directors Mortes Publing out to complet ding wat an Une per indongan para a rown in the posts ou a. CroatShowing and we beroof Cowon of the most dus well as to be below found to Round Bar of her Total Art Debt E of Shares * 3.200.000 sted 24% Integrative Oil capital structure The board of draden el Morales Puelning, we as comoda y The company has es er $98.200.000. It has servings before interest and tuvos et 87.900.000 and 2. Create song is about as well umber of showing a book of 25 perware b. Given the wore acou of motivatious is of data the years c. Using ET OTSO.000 a 24 tako, onde vormation developed in portband call the mostly whare for the first verste onders Mort ewendeteness Plan EPS 1. Unge Parties, the latest regard turn, and in PEPSI teate the valur per weer tevens ofere, we do nowego mare peper, Po commencen bowo ul rector of Mihing that species de les alespooning. Use you wanted to pay yox Total Da Integrativa Optimal capital wiructure The Beard et Sitecton of Morales Publishing, Inc., a commisioned a capital tuturo say. The company has total was of 1.200.000 nhan caninge before heront and teos $7.260.000 sedef 24% 2. Ce spreadshest showing on foot and equity was the total controls, uning a book value of $25 portare 6. Oliven the before-tax cost of contatous levels of nettedesco the yearly interesteren a. Using or of 87.000.000, 2. sal, and a Womaton deleged partem and (w.calculate the most truly earning per here for me fem at veroors Mannerhes That TS EPS 4. Using the deeped in particulo requieren, and the equation PEP8//thesuperhero a vario validate. Max level onderdress in the following the atten cer, Proposta de teste toard of director of Mori Pabloting down or he will come the firepower wan u you findron pune www show often wel het beror where Cound for the wholown to the future Salut Tolle Debit Hoof Share 1 1,200.000 Homework: Homework 6 Part of 30 O Point of 4 Integrative Optimal capital structure The board of directors of Monte Publishing, Inc. has comissioned a capsuly. The compra 200.000 tras entre le stand 6.000 und taxed Marae of 24% Create a prendohet showroom of Gott and equity as well as the total number of res, muring Book Value of 125 per share Given the before tax cost of debeat various levels of indebtedness, call the yearly interese Using EBIT 37,960.000 a 24%, and the information developed in parts and call the mostly in perware for the warundet eneste EPS. dus EPS developed in parte) e stines of red return theaton, EPS/ restre e per le at various of deeds. Moreovel of one in the um pricepershan, Po .. Prepare a recommendation to the board of director of Morsies Publishing that specifies the degree strede but will compliances an. Uw your ideas para trato atry you recommendation Create a pret showing out of it and it as well as the wheel hook of $25 per Calculation of the values of and outy well as the tomber of shares below found to the rest of Randers to the nearest) Det Total Assets Det Easy Ne of Shares 5 99 200 000 $ Istaw tegrational capital structure. The board of directora u Morate ning he has comment acheter une stay the core el mes et 10.200.000 har erwartete e .. Crash shown was found out as well. 35 Giacomo no Wish, can yowy step ng BTS..000,024 takte de Woondeco in parte de la mort Bayanings per the man worden Ungepet spandekas PS/ VW / Monter msimum price versare P Promotion the board of directors Mortes Publing out to complet ding wat an Une per indongan para a rown in the posts ou a. CroatShowing and we beroof Cowon of the most dus well as to be below found to Round Bar of her Total Art Debt E of Shares * 3.200.000 sted 24% Integrative Oil capital structure The board of draden el Morales Puelning, we as comoda y The company has es er $98.200.000. It has servings before interest and tuvos et 87.900.000 and 2. Create song is about as well umber of showing a book of 25 perware b. Given the wore acou of motivatious is of data the years c. Using ET OTSO.000 a 24 tako, onde vormation developed in portband call the mostly whare for the first verste onders Mort ewendeteness Plan EPS 1. Unge Parties, the latest regard turn, and in PEPSI teate the valur per weer tevens ofere, we do nowego mare peper, Po commencen bowo ul rector of Mihing that species de les alespooning. Use you wanted to pay yox Total Da
