Business, 05.06.2020 09:57 dthompson365

Dickinson Company has $11,820,000 million in assets. Currently, half of these assets are financed with long-term debt at 9.1 percent and a half with the common stock having a par value of $8. Ms. Smith, Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 9.1 percent. The tax rate is 40 percent. Tax-loss carryover provisions apply, so negative tax amounts are permissible. How would each of these plans affect earnings per share? Consider the current plan and the two new plans. (Round your answers to 2 decimal places.)

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Dickinson Company has $11,820,000 million in assets. Currently, half of these assets are financed wi...

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