Question
The capital structure for Cain Supplies is: Cain Supplies Debt @ 10% $ 80,000 Common stock, $10 par 160,000 Total $ 240,000 Common shares 16,000
The capital structure for Cain Supplies is:
| Cain Supplies | ||
| Debt @ 10% | $ | 80,000 |
| Common stock, $10 par | 160,000 | |
| Total | $ | 240,000 |
| Common shares | 16,000 | |
Compute the stock price for Cain if it sells at 17 times earnings per share and EBIT is $46,000. The tax rate is 30 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
|
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Financial Accounting A Business Perspective
Authors: Roger H. Hermanson, James Don Edwards
7th Edition
0072289988, 978-0072289985
