Question
The Marfa Mining Company has the following capital structure: Bonds (8.5%) $90 mil Common Stock (2.50 par) $80 mil Retained Earnings $45 mil The firm
The Marfa Mining Company has the following capital structure:
Bonds (8.5%) $90 mil
Common Stock (2.50 par) $80 mil
Retained Earnings $45 mil
The firm has EBIT of $120 million and a tax rate of 30 percent. What is the ROE and EPS?
| ROE = 6.29% EPS = $.95 | ||
| ROE = 36.6% EPS = $1.05 | ||
| ROE = 62.9% EPS = $2.46 | ||
| ROE = 69.4% EPS = $2.62 |
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Handbook On Corporate Governance In Financial Institutions
Authors: Christine A. Mallin
1st Edition
1784711780, 978-1784711788
