Question
The capital structure for Cain Supplies is: Cain Supplies Debt @ 10% $ 50,000 Common stock, $10 par 100,000 Total $ 150,000 Common shares 10,000
The capital structure for Cain Supplies is:
| Cain Supplies | ||
| Debt @ 10% | $ | 50,000 |
| Common stock, $10 par | 100,000 | |
| Total | $ | 150,000 |
| Common shares | 10,000 | |
Compute the stock price for Cain if it sells at 18 times earnings per share and EBIT is $40,000. The tax rate is 30 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Personal Finance
Authors: Jeff Madura
6th Edition
0134082915, 9780134082912
