Reliable gearing currently is all-equity-financed. it has 15,000 shares of equity outstanding, selling at $100 a share. the firm is considering a capital restructuring. the low-debt plan calls for a debt issue of $250,000 with the proceeds used to buy back stock. the high-debt plan would exchange $450,000 of debt for equity. the debt will pay an interest rate of 12%. the firm pays no taxes.

a.
what will be the debt-to-equity ratio if it borrows $250,000? (do not round intermediate calculations. round your answer to 2 decimal places.)

debt-to-equity ratio
b.
if earnings before interest and tax (ebit) are $160,000, what will be earnings per share (eps) if reliable borrows $250,000? (do not round intermediate calculations. round your answer to 2 decimal places.)

eps $

The proliferation of bittorrent and other file sharing media have threatened the copyright system. based on an understanding of incentives and opportunity cost, how are the decisions of musicians likely impacted?

Acme published a story about paul and as a result paul sued acme for damage to his reputation, emotional distress, and punitive damages. paul won an award of $20,000 for damages, $5,500 for emotional distress, and $50,000 for punitive damages. what amount must paul include in his gross income

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer