Question: Please solve quickly Please solve quickly Irving Corp. is currently all equity is considering a $555000 debt issue maintain a debt equity ratio of 0.40

 Please solve quickly Please solve quickly Irving Corp. is currently all

Please solve quickly

equity is considering a $555000 debt issue maintain a debt equity ratio

Please solve quickly

Irving Corp. is currently all equity is considering a $555000 debt issue maintain a debt equity ratio of 0.40 in the capital structure debt is 10%. There are currently 75000 shares outstanding. The Earnings before interest and taxes is expected to remain constant at the shares a. Compute the current EPS and EPS after change in the capital structure if the firm has a constant pay out rate of 75%. Show the share repurchases under proposed capital structure. (3 points) b. If you own 4440 worth of stock in this company what is your total cash flow if the pay out rate under the current capital struct c. Compute the number of shares repurchased from you and the total cash flow you will receive under the new capital structure? Calvert has a target capital structure of 80% of common stock, 10% percent of preferred stock and 10% debt. The common stock had a bet includes 5.5% percent coupons with 25 years' maturity with a quoted price of 107% of par. The 3.5 percent preferred stock with the par va return in the market is 2.8 percent, the risk premium is 6% and the tax rate is 25%. Compute Calvert's Weighted Average Cost of Capital (W For the toolbar, press ALT+F10 (PC or ALT+FN+F10 (Mac)

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