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please include excel formulas Integrative: Optimal capital structure Medallion Cooling. Systems has total assets of $10,000,000, EBT of $2,000,000, and preferred dividends of S200,000 and
please include excel formulas
Integrative: Optimal capital structure Medallion Cooling. Systems has total assets of $10,000,000, EBT of \$2,000,000, and preferred dividends of S200,000 and is. taxed at a rate of 40%. In an effort to delemine the optimal capital structurc, the firm has assembled data on the cost of debt, the number of shares of common sock for various levels of indebtedness, and the overall required return on investrient. a. Calculate carmings per share for each level of indebtednes5. b. Use Equation 13.12 and the carnings per share calculated in part a to calculate a price per share for each level of indebtedness. c. Choose the optimal capital structure. Justify your choice. Answers (insert your answers in the highlighted cells; use cell references, equations, and functions wherever possible) a. Calculate camings per share for each level of indebtedness. b. Use Equation 13.12 and the eamings per share calculated in part a to calculate a price per share for each level of indebtedness. EPS Required return, r3 Price pershare c. Choose the optimal capital structure. Justify your choice. Integrative: Optimal capital structure Medallion Cooling. Systems has total assets of $10,000,000, EBT of \$2,000,000, and preferred dividends of S200,000 and is. taxed at a rate of 40%. In an effort to delemine the optimal capital structurc, the firm has assembled data on the cost of debt, the number of shares of common sock for various levels of indebtedness, and the overall required return on investrient. a. Calculate carmings per share for each level of indebtednes5. b. Use Equation 13.12 and the carnings per share calculated in part a to calculate a price per share for each level of indebtedness. c. Choose the optimal capital structure. Justify your choice. Answers (insert your answers in the highlighted cells; use cell references, equations, and functions wherever possible) a. Calculate camings per share for each level of indebtedness. b. Use Equation 13.12 and the eamings per share calculated in part a to calculate a price per share for each level of indebtedness. EPS Required return, r3 Price pershare c. Choose the optimal capital structure. Justify your choice Step by Step Solution
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