Question
This is for the Hill Country's Snack Food Co, harvard business school case. This is for the Following the instructions in the discussion for this
This is for the Hill Country's Snack Food Co, harvard business school case.
This is for the Following the instructions in the discussion for this case, enter the following data for each level of debt, including 0%, 20%, 40% and 60% leverage. Provide the excel chart on how to accomplish this and the explanation of the formula's for how you got the numbers please.
Debt-to-Capital Ratio
0%
20%
40%
60%
Earnings per share
Dividends per share
Book value per share
Return on assets
Return on equity
Interest coverage
Stock price at P/E ratio of 14.47
Break-even P/E ratio for stock price of $41.67
Dividend yield at stock price of $41.67
Price at dividend yield of 2.04%
Present value of debt tax shield
Earnings available to security holders
Change from actual
Cash payments to security holders
Change from actual
Income taxes, change from actual
Impact on net income from a 10% reduction in EBIT
Impact on net income from a 20% reduction in EBIT
Internal growth rate at 30% payout ratio
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