What is the stock price for Cain

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Reference no: EM132829412

Question - The capital structure for Cain Supplies is:

Cain supplies

Debt @8% $270000

Common stock, $10 par $540000

Total $810000

Common shares $54000

What is the stock price for Cain if it sells at 18 times earnings per share and EBIT is $84000. The tax rate is 10%.

Reference no: EM132829412

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