Higher leverage of Jared Corporation will most likely _____ expected earnings per share. Additionally, it will...
Higher leverage of Jared Corporation will most likely _____ expected earnings per share. Additionally, it will _____ risk.
A.
increase; decrease
B.
decrease; increase
C.
decrease; decrease
D.
increase; increase
Homework Answers
D.increase : increase.
For a growing company higher leverage will increase the expected earnings per share, at the same time it will increase the risk associated with expected EPS.
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Higher leverage of Jared Corporation will most likely _____
expected earnings per share. Additionally, it will...
Through the effects of financial leverage, when EBIT increases, O earnings per share will decrease O...
Through the effects of financial leverage, when EBIT increases, O earnings per share will decrease O earnings per share will increase O fixed operating costs will decrease O fixed operating costs will increase
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The impact of financial leverage on return on equity and earnings per share Consider this case:...
The impact of financial leverage on return on equity and earnings per share Consider this case: Rinsemator Group. is considering a project that will require $350,000 in assets The project is expected to produce an EBIT (earnings before interest and taxes) of $55,000 · The project will be financed with 100% equity . There will be 25,000 shares of common equity outstanding · The company faces a tax rate of 30% Using the preceding information, what will be Rinsemator Group.'s...
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Joe has a current share price of $215.06 and is expected to have earnings per share...
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5) Pacific Corporation just paid an annual dividend of $3.00 per share on its common stock. Dividends are expected to grow at an annual rate of 1.5% hereafter. If the risk-free rate is 2%, the MRP is 7% and Pacific's stock is one-and-a-quarter times as risky as the market on average, what is the most that you should be willing to pay for a share of this stock today? A) $53.17 B) $47.89 C) $32.43 D) $32.92
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