Question
The capital structure for Cain Supplies is: Cain Supplies Debt @ 8% $ 60,000 Common stock, $10 par 120,000 Total $ 180,000 Common shares 12,000
The capital structure for Cain Supplies is:
| Cain Supplies | ||
| Debt @ 8% | $ | 60,000 |
| Common stock, $10 par |
| 120,000 |
| Total | $ | 180,000 |
| Common shares |
| 12,000 |
Compute the stock price for Cain if it sells at 15 times earnings per share and EBIT is $42,000. The tax rate is 10 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Quantitative Finance Its Development Mathematical Foundations And Current Scope
Authors: T. Wake Epps
1st Edition
0470431997, 9780470431993
