Question
Expected payments for next year Net income: $61 million Interest due: $18 million Interest rate on new debt: 5% Tax rate: 35% Scheduled debt
Expected payments for next year Net income: $61 million Interest due: $18 million Interest rate on new debt: 5% Tax rate: 35% Scheduled debt repayments: $42 million Current Stock price: $72 Number of shares outstanding: 20 million What will be the times-interest-earned ratio in the coming year if the company sells 3 million shares now instead of borrowing additional funds? What will be earnings per share in the coming year if the company sells 3 million shares now instead of borrowing additional funds?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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