Question: EPS/EBIT Analysis Enter in the corresponding data below for your firm. If you notice little to no change in EPS with stock vs debt financing,
EPS/EBIT Analysis Enter in the corresponding data below for your firm. If you notice little to no change in EPS with stock vs debt financing, the total amount of your recommendations is likely too low. Unless of course, you are recommending defensive strategies where you are not acquiring substantial new capital. Pessimistic Realistic Optimistic EBIT $8,500,000,000 $10,400,000,000 $12,300,000,000 EPS/EBIT Data Amounted Needed $5,000,000,000 Note: This number is the total cost of your recommendations. Interest Rate 4.84 Note: Enter as a decimal. Tax Rate 20.50 Note: Enter as a decimal. Shares Outstanding 21469728 Note: Enter in under Company Valuation on this page. # New Shares Outstanding 5609658 Note: Calculated automatically Stock Price $891.32 Note: Enter in under Company Valuation on this page. Combination Financing Data Percent Equity Used to Finance 97% Note: Enter as a decimal. Percent Debt Used to Finance 3% Note: Enter as a decimal. Total Equity and Debt 100% Note: Must equal 1.0. Check the two line items above. Complete Part II to Construct the EPS/EBIT Charts Common Stock Financing Debt Financing Pessimistic Realistic Optimistic Pessimistic Realistic Optimistic EBIT $8,500,000,000 $10,400,000,000 $12,300,000,000 $8,500,000,000 $10,400,000,000 $12,300,000,000 Interest 0 0 0 24,200,000,000 24,200,000,000 24,200,000,000 EBT 8,500,000,000 10,400,000,000 12,300,000,000 15,700,000,000 13,800,000,000 11,900,000,000 Taxes 174,250,000,000 213,200,000,000 252,150,000,000 321,850,000,000 282,900,000,000 243,950,000,000 EAT 165,750,000,000 202,800,000,000 239,850,000,000 306,150,000,000 269,100,000,000 232,050,000,000 # Shares 27,079,386 27,079,386 27,079,386 21,469,728 21,469,728 21,469,728 EPS ($6,120.89) ($7,489.09) ($8,857.29) $14,259.61 $12,533.93 $10,808.24 Amount Needed $5,000,000,000 Interest Rate 484% Stock 97% Debt 3% Tax Rate 2050% Pessimistic Realistic Optimistic # Shares Outstanding 21469728.4 EBIT $8,500,000,000 $10,400,000,000 $12,300,000,000 Additional Shares Outstanding Needed 5609657.59 Interest 650,980,000 650,980,000 650,980,000 Stock Price $891.32 EBT 7,849,020,000 9,749,020,000 11,649,020,000 Taxes 160,904,910,000 199,854,910,000 238,804,910,000 EAT 153,055,890,000 190,105,890,000 227,155,890,000 # Shares 26,911,096 26,911,096 26,911,096 EPS ($5,687.46) ($7,064.22) ($8,440.97) using the abouve data , provide a summary of the recommendations and implications of the EPS/EBIT analysis.
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