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

The for Cain Supplies is presented next. 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 percent.
Cain
Debt @ 9% ......... $100,000
Common stock, $10 par ..... 200,000
Total ........... $300,000
Common shares ........ 20,000

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