Business

Haleigh Booker

10 June, 07:50

Rolston corporation is comparing two different capital structures, an all-equity plan (plan i) and a levered plan (plan ii). under plan i, rolston would have 190,000 shares of stock outstanding. under plan ii, there would be 140,000 shares of stock outstanding and $2.00 million in debt outstanding. the interest rate on the debt is 8 percent and there are no taxes.

a. if ebit is $625,000, what is the eps for each pla

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