Business
Business, 19.03.2021 02:50, valdezavery9018

Kolby Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt. Plan II would result in 7,200 shares of stock and $160,000 in debt. The interest rate on the debt is 10 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $90,000. The all-equity plan would result in 20,000 shares of stock outstanding. What is the EPS for each of these plans?

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Kolby Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of s...

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