a)what's the max. dividend per share payable by x company and y company respectively b)if interest rate

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a)what's the max. dividend per share payable by x company and y company respectively

b)if interest rate wasn't %6 of debt but 12% of debt , what is the maximum dividend payable per share

x compay($millions)		y company
debt	100		200
equity (1$ a share)	400		300
earning before interest	50		50
interest (6%of debt)	6		12

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Corporate Financial Management

ISBN: 978-0273758839

5th edition

Authors: Glen Arnold

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Posted Date: Dec 08, 2022 05:44 AM

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a)what's the max. dividend per share payable by x company and y company respectively b)if interest rate

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