Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that it
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Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that it will enable them to earn an additional $600,000 after tax. What would be the impact on earnings per share if the raise the $1,000,000 by:
a) issuing 10,000 share of 10% $100 par value convertible preferred stock, where share can be coverted into 10 shares of Peyton common stock?
b) issuing $1,000,000 of 8% convertible bond, each $1,000 bond can be converted into? 5 shares of Peyton common stock?
c) $500,000 of each of the above?
Related Book For
Management Information Systems Managing the Digital Firm
ISBN: 978-0134639710
15th edition
Authors: Kenneth C. Laudon, Jane P. Laudon
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