Question: please show the work ty so much Gearng compony aurnenthy is all is considering a capitalestruct a dibt plan calls fre a debt issue of
Gearng compony aurnenthy is all is considering a capitalestruct a dibt plan calls fre a debt issue of $310,000 with the proceeds ueld to buy, back stock. The high-debt plan would wechange debt will pay an interest kate of 12%. The firm pays no taxes. a. What will the debt to equity ratio if it borrmis $310,000 ? - Rund 2 dec places b. If earnings be fore intercet 3 tax (BT) ane $220,000 what will be earning fer share (EPS) if bealing borrows $3,0,000 ? C. If equening be fore in terest 3 tax are $220,000, what will be earning per shione if Gowing borrons \$510,000? Gearing company curnently is allequity-financed. It has 21,000 shares of equity outstanding selling at \$\$100 a share. The fiem is considening a capital frstructining. The low debt plan calis for a dibt plan calls fue a debt issue of $310,000 with the proceeds used to buy back stock. The high-debt plan would ixchange 5510,000 of debt for equity. The debt will pay an interest kate of 12\%\%. The firm pays no taxes. a. What will the debt to equity ratio if it bormws $310,000 ? - Ronind 2 dec places b. If earningo be fore interest 3 tax (BT) are $220,000, what will be borrows \$ 3,0,000 ? c. If ealuing be thee in terest 3 tax are $220,000, what will be earning per shione if Goourng borronus $510,000
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