Question
The capital structure for Cain Supplies is: Cain Supplies Debt @ 9% $ 190,000 Common stock, $10 par 380,000 Total $ 570,000 Common shares 38,000
The capital structure for Cain Supplies is:
Cain Supplies Debt @ 9% $ 190,000
Common stock, $10 par 380,000
Total $ 570,000
Common shares 38,000
Compute the stock price for Cain if it sells at 16 times earnings per share and EBIT is $68,000. The tax rate is 20 percent.
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Finance For IT Decision Makers
Authors: Michael Blackstaff
3rd Edition
1780171226, 978-1780171227
