Expected payments for next year Net income: $61 million Interest due: $18 million ...
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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? 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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Answer rating: 100% (QA)
To calculate the timesinterestearned TIE ratio and earnings per share EPS for the coming year if the company sells 3 million shares instead of borrowi... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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