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PLEASE ANSWER WITH EXCEL FORMATE AND FORMULA!!!!!! Fujita, Inc., has no debt outstanding and a total market value of $ 2 2 2 , 0
PLEASE ANSWER WITH EXCEL FORMATE AND FORMULA!!!!!!
Fujita, Inc., has no debt outstanding and a total market value of $ Earnings before interest and taxes, EBIT, are projected to be $ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be percent higher. If there is a recession, then EBIT will be percent lower. The company is considering a $ debt issue with an interest rate of percent. The proceeds will be used to repurchase shares of stock. There are currently shares outstanding. Assume the company has a tax rate of percent, a markettobook ratio of and the stock price remains constant. a Calculate earnings per share EPS under each of the three economic scenarios before any debt is issued. Also calculate the percentage changes in EPS when the economy expands or enters a recession. b Repeat part a assuming that the company goes through with recapitalization.Use cells to from the given information to complete this question.
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