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please answer part A,B,C,D,E P13-26 (similar to) Integrative Optimal capital structure The board of directors of Morales Publishing, Inc. has commissioned a capital structure study.

please answer part A,B,C,D,E image text in transcribed
P13-26 (similar to) Integrative Optimal capital structure The board of directors of Morales Publishing, Inc. has commissioned a capital structure study. The company has total assets of $39,800,000. It has earnings before interest and taxes of $7.900.000 and is awed at a rate of 25% a. Create a spreadsheet showing of debt and equity as well as the number of shares, assuming a book value of $25 per share . Given the before-tax cost of debt at various levels of indebtedness, calculate the yearly rest expenses c. Using EBIT of $7.800.000, a 25% 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 maximis EPS d. Using the EPS developed in particl, the estimates of required retum, and the equation - EPS/restimate the value por share at various levels of indebtedness Mark the level of indebtedness in the following table that results in the maximum price per share. Po 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, a. Create a spreadsheet showing values of debt and equity as well as the total number of shares, assuming a book value of $25 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% $ 39,800.000 $

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