Suppose that Macbeth Spot Removers issues only $2,500 of debt and uses the proceeds to repurchase 250 shares.
a. Rework Table 17.2 to show how earnings per share and share return now vary with operating income.
b. If the beta of Macbeth’s assets is .8 and its debt is risk-free, what would be the beta of the equity after the debt issue?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.