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use info of Q1 to respond question to respond: please answer about EPS question 1 points 59 a thin sibo tieneaind 4400 milion 5:750 milice
use info of Q1 to respond
question to respond:
please answer about EPS question
1 points 59 a thin sibo tieneaind 4400 milion 5:750 milice What is the net income under the current capital structure? $25,000,000$50,000,000$55,500,000$60,000,000 What is the EPS under the current capital structure? $1.6 $2.5 $4.5 $5.0 Use the following information to complete the quiz: The All-Star Production Corporation (APC) is considering a recapitalization plan that would convert APC from its current all-equity capital structure to one including some financial leverage. APC now has 10,000,000 shares of common stock outstanding, which are selling for $40.00 each, and you expect the firm's EBIT to be $50,000,000 per year for the foreseeable future. APC shareholders require a 12.5 percent return on their investment in APC. The recapitalization proposal is to issue $100,000,000 worth of long-term debt at an interest rate of 6.50 percent and use the proceeds to repurchase as many shares as possible at a price of $40.00 per share. Assume there are no market frictions such as corporate or personal income taxes Step by Step Solution
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