Question
The capital structure for Cain Supplies is: Cain Supplies Debt @ 9% $ 220,000 Common stock, $10 par 440,000 Total $ 660,000 Common shares 44,000
The capital structure for Cain Supplies is:
| Cain Supplies | ||
| Debt @ 9% | $ | 220,000 |
| Common stock, $10 par | 440,000 | |
| Total | $ | 660,000 |
| Common shares | 44,000 | |
Compute the stock price for Cain if it sells at 19 times earnings per share and EBIT is $74,000. The tax rate is 20 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Stock Price = ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Compensation And Benefits Programs
Authors: Kelli W. Vito
1st Edition
0894136720, 978-0894136726
