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Please show all work in an excel style format. I appreciate all your help. The Company has the following selected financial results. The company is
Please show all work in an excel style format. I appreciate all your help.
The Company has the following selected financial results. The company is considering a capital restructuring to increase leverage from its present level of 10% of capital. Show all of your calculation work and label all of your work so I can follow your calculation process. Calculate Findlay's ROE and EPS under its current capital structure. Restate the financial statement line items shown, the number of shares outstanding, ROE, and EPS if Findlay borrows money and uses it to retire stock until its capital structure is 40% debt assuming EBIT remains unchanged and the stock continues to sell at its book value. (Develop the second column of the chart shown.) Recalculate same figures assuming Findlay continues to restructure until its capital structure is75% debt. (Develop the third column of the chart.)Step by Step Solution
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