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The capital structure for Cain Supplies is: Cain Supplies Debt @ 8% $ 270,000 Common stock, $10 par 540,000 Total $ 810,000 Common shares 54,000
The capital structure for Cain Supplies is: Cain Supplies Debt @ 8% $ 270,000 Common stock, $10 par 540,000 Total $ 810,000 Common shares 54,000 Compute the stock price for Cain if it sells at 18 times earnings per share and EBIT is $84,000. The tax rate is 10 percent
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