Business, 05.05.2020 08:07 jayloy969

Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $2.52 million of debt financing at 14% interest. The all-equity firm will have a value of $4.2 million and 420 comma 000 shares outstanding. The levered firm will have 168 comma 000 shares outstanding. a. Find the break-even EBIT for Alpha Company using EPS if there are no corporate taxes. b. Find the break-even EBIT for Alpha Company using EPS if the corporate tax rate is 35%.c. What do you notice about these two break-even EBITs for Alpha Company?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:20

Suppose an economy consists of three sectors: energy (e), manufacturing (m), and agriculture (a). sector e sells 70% of its output to m and 30% to a. sector m sells 30% of its output to e, 50% to a, and retains the rest. sector a sells 15% of its output to e, 30% to m, and retains the rest.

Answers: 1

Answer

Business, 22.06.2019 02:30

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?

Answers: 1

Answer

Business, 22.06.2019 09:00

Drag the tiles to the correct boxes to complete the pairs.(there's not just one answer)match each online banking security practice with the pci security requirement that mandates it.1. encrypting transfer of card data2. installing a firewall3. installing antivirus software4. assigning unique ids and user namesa. vulnerability management programb. credit card data protectionc. strong access controlsd. secure network

Answers: 3

Answer

Business, 22.06.2019 11:40

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?

Answers: 3

Answer

You know the right answer?

Alpha Company is looking at two different capital structures, one an all-equity firm and the other a...

Questions