题目
题目
简答题

Ben Ten Limited (BTL) is a new company and management are trying to decide on a financing structure.  They want to raise $10,000,000. They were offered the following option: Fund 60% of the firm with debt and the balance with ordinary shares at an issue price of $2 per share. BTL has been advised that the cost of debt finance would be 4.22%pa due to its relative risk. The current Earnings Before Interest and Tax (EBIT) is $5,000,000   The company tax rate is 30%.   Calculate the Earnings Per Share of this option (Round your answer to 2 decimal places. For example, if your answer is 0.66666666 -> Enter your answer as 0.67)

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思路分析
We start by identifying the financing structure: 60% of the $10,000,000 raise is debt, and 40% is equity. Debt amount = 0.60 × 10,000,000 = 6,000,000. Equity amount = 0.40 × 10,000,000 = 4,000,000. The equity is issued at $2 per share, so the ......Login to view full explanation

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Ben Ten Limited (BTL) is a new company and management are trying to decide on a financing structure.  They want to raise $10,000,000. They were offered the following option: Fund 60% of the firm with debt and the balance with ordinary shares at an issue price of $2 per share. BTL has been advised that the cost of debt finance would be 3.65%pa due to its relative risk. The current Earnings Before Interest and Tax (EBIT) is $6,000,000   The company tax rate is 30%.   Calculate the Earnings Per Share of this option (Round your answer to 2 decimal places. For example, if your answer is 0.66666666 -> Enter your answer as 0.67)

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