a-1 |
EPS = EBIT*(1-tax rate)/shares outstanding |
Recession |
EPS = EBIT*(1-recession impact%)*(1-tax rate)/shares outstanding |
EPS=9500*(1-0.35)*(1-0.34)/5100 |
EPS=0.8 |
Normal |
EPS = EBIT*(1-tax rate)/shares outstanding |
EPS=9500*(1-0.34)/5100 |
EPS=1.23 |
Expansion |
EPS = EBIT*(1+Growth impact%)*(1-tax rate)/shares outstanding |
EPS=9500*(1+0.2)*(1-0.34)/5100 |
EPS=1.48 |
B |
%age change in EPS for Recession |
=(EPS recession/EPS normal-1)*100 |
=(0.7991/1.2294-1)*100 |
=-35% |
%age change in EPS for Growth |
=(EPS Growth/EPS normal-1)*100 |
=(1.4753/1.2294-1)*100 |
=20% |
C |
New no. of shares = old shares-debt/(Market value/old shares) |
=5100-45300/(153000/5100) |
=3590 |
EPS = (EBIT-debt*interest%)*(1-tax rate)/new shares outstanding |
Recession |
EPS = (EBIT*(1-recession impact%)-debt*interest %age)*(1-tax rate)/new shares outstanding |
EPS=(9500*(1-0.35)-45300*0.05)*(1-0.34)/3590 |
EPS=0.72 |
Normal |
EPS = (EBIT-debt*interest%)*(1-tax rate)/new shares outstanding |
EPS=(9500-45300*0.05)*(1-0.34)/3590 |
EPS=1.33 |
Expansion |
EPS = (EBIT*(1+growth impact%)-debt*interest %age)*(1-tax rate)/new shares outstanding |
EPS=(9500*(1+0.2)-45300*0.05)*(1-0.34)/3590 |
EPS=1.68 |
D |
%age change in EPS for Recession |
=(EPS recession/EPS normal-1)*100 |
=(0.7188/1.3301-1)*100 |
=-46% |
%age change in EPS for Growth |
=(EPS Growth/EPS normal-1)*100 |
=(1.6794/1.3301-1)*100 |
=26% |
i need help Kaelea, Inc., has no debt outstanding and a total market value of $153,000....
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