Question
The Thurber Mining Company has the following capital structure: Bonds (11.5%) $200 mil Common Stock ($4 par) $135 mil Retained Earnings $60 mil EBIT is
The Thurber Mining Company has the following capital structure: Bonds (11.5%) $200 mil Common Stock ($4 par) $135 mil Retained Earnings $60 mil EBIT is $105 million and the tax rate is 40%. What is ROE and DFL?
ROE = 12.46%
DFL = 1.28
ROE = 31.6%
DFL = 1.02
ROE = 15.6%
DFL = 1.02
ROE = 25.2%
EPS = 1.28
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
