Question
The capital structure for Cain Supplies is: Cain Supplies Debt @ 10% $ 260,000 Common stock, $10 par 520,000 Total $ 780,000 Common shares 52,000
The capital structure for Cain Supplies is:
| Cain Supplies | ||
| Debt @ 10% | $ | 260,000 |
| Common stock, $10 par | 520,000 | |
| Total | $ | 780,000 |
| Common shares | 52,000 | |
| Compute the stock price for Cain if it sells at 17 times earnings per share and EBIT is $82,000. The tax rate is 30 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Stock price | $ |
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M Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
3rd Edition
0077861779, 978-0077861773
