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Please show formulas Usher Housing is considering two different capital strucutres, the first of which is an all-equity plan with 200,000 shares outstanding. Under the
Please show formulas
Usher Housing is considering two different capital strucutres, the first of which is an all-equity plan with 200,000 shares outstanding. Under the second option the firm would have 125,000 shares outstanding along with $800,000 debt outstanding. a. For both capital structures, calculate net income and earnings per share if EBIT is $300,000. b. For both capital structures, calculate net income and earnings per share if EBIT is $600,000. c. Calculate the breakeven EBIT. 14 points Unlevered Shares outstanding 200,000 Levered Shares outstanding Debt outstanding 125,000 800,000 Interest rate 6% 300,000 600,000 a. EBIT b. EBIT a. Plan I Plan II b. Plan I Plan II c. Breakeven EBIT 6A EA EA $ Net income EPSStep by Step Solution
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