A firm has a current capital structure consisting of $400,000 of 12 percent annual interest debt and 50,000 shares of common stock. The firm's tax rate is 40 percent on ordinary income
If the EBIT is expected to be $200,000, the firm's earnings per share will be ________.
A) $2.40
B) $3.04
C) $7.04
D) $1.82
D
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Springdale Co reported net income of $200,000 . Cash from operations
a. will be more than $200,000. b. will be less than $200,000. c. will be equal to $200,000. d. cannot be determined without more information.
Answer the following statements true (T) or false (F)
1. Empowerment efforts typically don’t face obstacles or challenges. 2. Protective tactics are attempts to be seen in a positive; acquisitive tactics are attempts to avoid looking bad. 3. Deception is defined as knowingly trying to mislead others. 4. The practice of lying with “little white lies” is not harmful because the long term benefits outweigh the costs.
All corporations must issue preferred stock
Indicate whether the statement is true or false
Municipal bonds generally appeal to investors
A) in low marginal tax brackets. B) in low marginal tax brackets, but who also seek to defer income to later years. C) in high marginal tax brackets. D) in high marginal tax brackets, but who also seek to defer income to later years.