Pt. Tungkir Jaya year end of 2005 has a capital of $ 100,000

with an EBIT of $ 150,000 and will increase its capital $

50,000 for expansion with capital sources from three alternatives:

A. Emissions of ordinary shares are all.

B. With bonds, coupon rate 12%

In order to expand this company in 2006 expects

EBIT to $270,000, tax rate 40%. In 2005 common stock

250,000 lbr and can sell for $50/lbr. Management policy

that if you choose a source of funds from your own capital, then

the company must mission a new common stock of 12,500 lbr.

Asked:

A. Calculate EAT and EPS on all three additional alternative funds.

B. Calculate break even point EBIT

c. According to you, which source of capital is chosen by the management

to plan the profit determined in 2006?.

Answer rating: 100% (QA)

Okay lets solve this stepbystep A Calculate EAT and EPS for each alternative Alternativ... View the full answer