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Please do not hand write answer. Please be clear on EVERYTHING. Please label everything. Based on the following set of information, do an EPS-EBIT analysis.
Please do not hand write answer. Please be clear on EVERYTHING. Please label everything.
Based on the following set of information, do an EPS-EBIT analysis. You need to consider the following financing options: 100% debt, 50% debt and 50% equity, 20% debt and 80% equity, and 100% equity. Amount of capital needed: $100 million Estimated EBIT range o Low end: $30 million (recession scenario) Midpoint: $45 million (normalcy scenario) o High end: $60 million (boom scenario) o Interest rate: 10 percent o Tax rate: 20 percent o Stock price: $50 o Number of shares outstanding: 100 million Your analysis should be accompanied with a thorough interpretation of results, Based on the following set of information, do an EPS-EBIT analysis. You need to consider the following financing options: 100% debt, 50% debt and 50% equity, 20% debt and 80% equity, and 100% equity. Amount of capital needed: $100 million Estimated EBIT range o Low end: $30 million (recession scenario) Midpoint: $45 million (normalcy scenario) o High end: $60 million (boom scenario) o Interest rate: 10 percent o Tax rate: 20 percent o Stock price: $50 o Number of shares outstanding: 100 million Your analysis should be accompanied with a thorough interpretation of results Step by Step Solution
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