Question: Based on your calculations in the excel above do you approve Dobrynins plan to recapitalize the company? Why? Answer in 4-5 sentences. No leverage Operating

Based on your calculations in the excel above do you approve

Based on your calculations in the excel above do you approve Dobrynins plan to recapitalize the company? Why? Answer in 4-5 sentences.

No leverage Operating income (EBIT) Interest expense Taxable income Taxes (@40%) Net income Shares outstanding EPS Worst case Most likely Best case $214 $514 $814 $0 $0 $0 $214 $514 $814 $86 $206 $326 $128 $308 $488 232.441 232.441 232.441 $0.55 $1.33 $2.10 Recapitalization with Share Repurchase Operating income (EBIT) Interest expense Taxable income Taxes (@40%) Net income Shares outstanding EPS Worst case Most likely Best case $214 $514 $814 $390 $390 $390 ($176) $124 $424 ($70) $50 $170 ($106) $74 $254 183.686 183.686 183.686 ($0.57) $0.41 $1.38 Recapitalization with Dividend Operating income (EBIT) Interest expense Taxable income Taxes (@40%) Net income Shares outstanding EPS Worst case Most likely Best case $214 $514 $814 $390 $390 $390 ($176) $124 $424 ($70) $50 $170 ($106) $254 232.441 232.441 232.441 ($0.45) $0.32 $1.09 $74

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