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The firm is considering switching to a 15-percent debt capital structure, and has determined that they would have to pay a 11 percent yield on
The firm is considering switching to a 15-percent debt capital structure, and has determined that they would have to pay a 11 percent yield on perpetual debt in either event. What will be the standard deviation in EPS if they switch to the proposed capital structure? (Round your intermediate calculations and final answer to 2 decimal places except calculation of number of shares which should be rounded to nearest whole number.)
- 6.13
- 13.05
- 12.54
- 2.60
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