Considering different capital structures

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Reference no: EM131067496

Paw Patrol is considering2 different capital structures. Structure A is 100% equity with 150,00 shares outstanding and $500,000 market value. Structure B is 50/50 debt/equity split with total market value of $500,00. Rate on debt will be 10%, assume tax rate of 35% and projected EBIT of $75,000. Calculate interest, taxes, net income, EPS, and ROE for both structures.

Reference no: EM131067496

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