Question: The capital structure for Cain Supplies is presented below. Compute the stock price for Cain if it sells at 19 times earnings per share and

The capital structure for Cain Supplies is presented below. Compute the stock price for Cain if it sells at 19 times earnings per share and EBIT is $50,000. The tax rate is 20%.

Debt @ 10%	$100,000
Common stock, $10 par	200,000
total	$300,000
Common Shares	20,000

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