Question
Please answer as quickly as you can Assume no taxes, no bankruptcy costs. Company U has no debt outstanding. The market value is 422124, earnings
Please answer as quickly as you can
Assume no taxes, no bankruptcy costs. Company U has no debt outstanding. The market value is 422124, earnings before interest and taxes (EBIT) is 55794 and the share price is 46.
1.Calculate Earnings per share (EPS).
2. Company U is considering a 205301 debt issue with a 6% interest rate (the proceeds are used to buy back the shares). How many shares will be bought back?
3. Calculate earnings per share (EPS) after the debt issue.
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
