As the Financial vice president for Bear Enterprises, you have the following inf

Question

As the Financial vice president for Bear Enterprises, you have the following information: Expected net income after tax next year before new financing : $60,000,000 Sinking Fund payments due next year on existing debt: $20,000,000 Interest due next year on existing debt $18,000,000 Conpany Tax rate 25% Common Stock Price, per share $17 Common Shares outstanding: 22,000,000 Calculate Bear's Earnings Per Share for next year assuming the firm raises $60 Million of new debt at an interest rate of 9 percent Answer a. $2.54 b. $22.54 c. $1.69 d. $16.95

Explanation / Answer

(98-23.4) (1-.25) / 22 = 2.54

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.