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The capital structure for Cain Supplies is: Cain Supplies Debt @ 10% $ 290,000 Common stock, $10 par 580,000 Total $ 870,000 Common shares 58,000
| The capital structure for Cain Supplies is: |
| Cain Supplies | ||
| Debt @ 10% | $ | 290,000 |
| Common stock, $10 par | 580,000 | |
| Total | $ | 870,000 |
| Common shares | 58,000 | |
| Compute the stock price for Cain if it sells at 20 times earnings per share and EBIT is $88,000. The tax rate is 30 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Stock price | $ |
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