Reference no: EM133032211
Question - As CFO of Nile Holdings, a carpet wholesaler, you have the following information as of December 2011:
Last year's EBIT, 2011 $175.0 million
Expected EBIT 2012 $189.8 million
Current portion of existing long-term debt, due 2012 $34 million
Interest due 2012 on existing debt $36 million
Tax rate 35%
Common stock price today, per share $50
Common shares outstanding 20 million
Dividends per share $2
Nile has an attractive investment opportunity, and to finance it, must decide whether to issue $100 million in new debt or new equity.
Required - Calculate next year's earnings per share assuming Nile raises the $100 million of new debt.
Calculate operating, financial, and combined leverage
: Calculate operating, financial, and combined leverage. Also calculate % change in EPS if the sales are expected to increase by 5%
|
What is the balance of bbb capital after the admission
: The total capital will be P330,000 and DDD's capital will be P70,000. What is the balance of BBB's capital, after the admission of CCC
|
PUBH6007 Program Design, Implementation and Evaluation
: PUBH6007 Program Design, Implementation and Evaluation Assignment Help and Solution, Laureate International Universities - Assessment Writing Service
|
Calculate the change in cash and cash equivalents
: Assume the loan is an integral part of cash management. Calculate the change in cash and cash equivalents during the year, and the ending balance
|
Calculate next year earnings per share
: Nile has attractive investment opportunity, and to finance it, must decide whether to issue $100 million in new debt or new equity. Calculate next year earnings
|
Journalized the adjusting entry
: Journalized the adjusting entry - Dec. 31 Based on an analysis of the $1,759,500 of accounts receivable, it was estimated that $35,190 will be uncollectible
|
Confidence intervals and estimation errors
: What is the role of sample size in calculation of confidence intervals? What factors might determine the size of an ideal sample in your dissertation study.
|
How much cash was received from this sale
: Accumulated depreciation, equipment - beginning balance: $22,000; ending balance: $18,000. How much cash was received from this sale
|
What is the revenue recognized in the income statement
: As of July 31, 2021, $15,000 of certificates were unredeemed. What is the revenue recognized in the income statement for the month ending July
|