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How will each of the options above affect EPS

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Reference no: EM133061810

Question - Company X is considered to purchase another company. The company has 3 funding options:

1. To received bank credit.

2. Issued debentures for 25 years, the payments will start in the sixth year.

3. Issued up to 300 mil common stock Price estimated at 30.

The options do not depend on each other.

Required -

1. What will this affect? On the assets/net profit?

2. How will each of the options above affect EPS, DPS, WACC and TIE assuming each option is independent of the other and the rest of the data is the same?

Reference no: EM133061810

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