Question
The capital structure of the Beez Ltd. consists of the 500,000 ordinary shares valued $1 fully paid each, and $250,000 borrowings at rate of 8%.
The capital structure of the Beez Ltd. consists of the 500,000 ordinary shares valued $1 fully paid each, and $250,000 borrowings at rate of 8%. The EBIT is expected to be $450,000 and the tax rate is 25%. The Beez for fundraising of additional $250,000 has 2 options from either of the below programs: Issuing $500,000 ordinary shares at $0.50 Issuing $250,000 debentures at rate of 10% Group of answer choices What is the EPS for the program 1? [ Choose ] What is the EPS for the program 2? [ Choose ] What is the Net Profit (after tax) for the program 1? [ Choose ] What is the Net Profit (after tax) for the program 2? [ Choose ]
What is the Net Profit (after tax) for the program 1?
What is the Net Profit (after tax) for the program 2?
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