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Reliable Gearing currently is all - equity - financed. It has 1 6 , 0 0 0 shares of equity outstanding, selling at $ 1
Reliable Gearing currently is allequityfinanced. It has shares of equity outstanding, selling at $ a share. The firm is considering a capital restructuring. The lowdebt plan calls for a debt issue of $ with the proceeds used to buy back stock. The highdebt plan would exchange $ of debt for equity. The debt will pay an interest rate of The firm pays no taxes.
What will be the debttoequity ratio if it borrows $
Note: Round your answer to decimal places.
If earnings before interest and tax EBIT are $ what will be earnings per share EPS if Reliable borrows $
Note: Round your answer to decimal places.
If earnings before interest and tax EBIT are $ what will be earnings per share EPS if Reliable borrows $
Note: Round your answer to decimal places.
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