{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-09T19:19:12-04:00", "answer_date": "2024-06-09 19:19:12", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2537345", "url": "\/study-help\/questions\/please-review-pictures-cain-auto-supplies-and-able-auto-parts-2537345", "question_creation_date_js": "2024-06-09T19:19:12-04:00", "question_creation_date": "Jun 09, 2024 07:19 PM", "meta_title": "[Solved] Please review pictures. Cain Auto Supplie | SolutionInn", "meta_description": "Answer of - Please review pictures. Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. T | SolutionInn", "meta_keywords": "review,pictures,cain,auto,supplies,parts,competitors,aftermarket,separate,capital,structures,presented", "question_title_h1": "Please review pictures. Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The separate capital structures for Cain and", "question_title": "Please review pictures. Cain Auto Supplies and Able Auto Parts are competitors", "question_title_for_js_snippet": "Please review pictures Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies The separate capital structures for Cain and Able are presented below Cain Able Debt 8 8 $90, 000 Debt 8 $180,000 Common stock 180,000 Common stock 90,000 Total $270, 000 Total $270,000 Common shares 18,000 Common shares 9,000 a Compute EPS if EBIT are $18,000, $21,600, and $54,000 (assume a 10 percent tax rate) (Round the final answers to 2 decimal places Do not leave any empty spaces input a 0 wherever it is required ) Cain Able EPS at $18,000 S EPS at $21, 600 S EPS at $54,000 S b What is the relationship between EPS and level of EBIT c If the cost of debt went up 1 010 percent and all other factors remained equal, what would be the indifference point for EBIT' Break even level $ ", "question_description": "\"image\"image

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\"image\"image<\/div><\/div><\/div> Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The separate capital structures for Cain and Able are presented below. Cain Able Debt 8 8% $90, 000 Debt @ 8% $180,000 Common stock 180,000 Common stock 90,000 Total $270, 000 Total $270,000 Common shares 18,000 Common shares 9,000 a. Compute EPS if EBIT are $18,000, $21,600, and $54,000 (assume a 10 percent tax rate). (Round the final answers to 2 decimal places. Do not leave any empty spaces; input a 0 wherever it is required.) Cain Able EPS at $18,000 S EPS at $21, 600 S EPS at $54,000 S b. What is the relationship between EPS and level of EBIT?c. If the cost of debt went up 1:010 percent and all other factors remained equal, what would be the indifference point for EBIT'? Break-even level $ |:|", "transcribed_text": "", "related_book": { "title": "Calculus Early Transcendentals", "isbn": "1285741552, 9781305482463 , 978-1285741550", "edition": "8th edition", "authors": "James Stewart", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1779.jpg", "uri": "\/textbooks\/calculus-early-transcendentals-8th-edition-1779", "see_more_uri": "" }, "free_related_book": { "isbn": "1668026279", "uri": "\/textbooks\/wildfire-a-novel-978-1668026274-126485", "name": "Wildfire A Novel", "edition": "" }, "question_posted": "2024-06-09 19:19:12", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/draw-and-name-all-monochloro-derivatives-of-2-5dimethylhexane-c8h17c1-solution", "description": "Draw and name all monochloro derivatives of 2, 5-dimethylhexane, C8H17C1.", "stars": 3 }, { "url": "\/once-upon-a-time-many-many-years-ago-there-lived-a", "description": "Once upon a time many, many years ago, there lived a feudal landlord in a small province of Western Europe. 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