Business, 29.11.2019 01:31 yasyyas646646
Donat corp. is a small company looking at two possible capital structures. currently, the firm is an allminusequity firm with $600,000 in assets and 100,000 shares outstanding. the market value of each share is $6.00. the ceo of donat is thinking of leveraging the firm by selling $300,000 of debt financing and retiring 50,000 shares, leaving 50,000 shares outstanding. the cost of debt is 5% annually, and the current corporate tax rate for donat is 30%. the ceo believes that donat will earn $50,000 per year before interest and taxes. which of the statements below is true? a. 50/50 debtminustominusequity eps is $0.49. b. allminusequity eps is $0.35. c. shareholders will be better off by $0.14 per share under a firm with $300,000 in debt financing versus a firm that is allminusequity. d. statements a, b, and c are all true.
Answers: 1
Business, 22.06.2019 01:00
Cooper, cpa, is auditing the financial statements of a small rural municipality. the receivable balances represent residents’ delinquent real estate taxes. internal control at the municipality is weak. to determine the existence of the accounts receivable balances at the balance sheet date, cooper would most likely: cooper, cpa, is auditing the financial statements of a small rural municipality. the receivable balances represent residents’ delinquent real estate taxes. internal control at the municipality is weak. to determine the existence of the accounts receivable balances at the balance sheet date, cooper would most likely:
Answers: 3
Business, 22.06.2019 14:30
You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should
Answers: 1
Business, 22.06.2019 16:10
The following are line items from the horizontal analysis of an income statement:increase/ (decrease) increase/ (decrease) 2017 2016 amount percent fees earned $120,000 $100,000 $20,000 20% wages expense 50,000 40,000 10,000 25 supplies expense 2,000 1,700 300 15 which of the items is stated incorrectly? a. fees earned b. supplies expense c. none of these choices are correct. d. wages expense
Answers: 3
Business, 22.06.2019 20:00
Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?
Answers: 1
Donat corp. is a small company looking at two possible capital structures. currently, the firm is an...
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