Calculating capital structure? weights

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(Calculating capital structure? weights) The common stock of? Moe's Restaurant is currently selling for ?$84 per? share, has a book value of ?$57 per? share, and there are 1.11 million shares of common stock outstanding. In? addition, the firm also has 114,000 bonds outstanding with a par value of ?1,000 that are selling at 114 percent of par. What are the capital structure weights that? Moe's should use to analyze its capital? structure?

(Computing interest tax? savings) Dharma Supply has earnings before interest and taxes? (EBIT) of ?$500,000?, interest expenses of ?$300,000?, and faces a corporate tax rate of 35 percent.

a. What is Dharma? Supply's net? income?

b. What would? Dharma's net income be if it? didn't have any debt? (and consequently no interest? expense)?

c. What are the? firm's interest tax? savings?

Reference no: EM132478082

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