What should be the increase in earnings per share

Assignment Help Financial Management

Reference no: EM13769187

Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000. In addition, they paid $480,000 in interest to bondholders. Cayman has a 35% marginal tax rate. If Cayman's sales increase 7%, what should be the increase in earnings per share?

13.3%

11.2%

13.9%

10.8%

8.7%

Reference no: EM13769187

Questions Cloud

Scholarly resources and popular resources issue : Explain the differences between scholarly resources and popular resources.

Best matches the primary goal of financial management : Which one of the following best matches the primary goal of financial management?

A potential problem appropriate to a nurse practitioner : Consider a potential problem appropriate to a nurse practitioner that you would like to investigate through nursing research and provide a critical evaluation on that research through an annotated bibliography. An annotated bibliography is a brief su..

Challenges that overlapping of jurisdictions pose : Identify the specific challenges that overlapping of jurisdictions pose in the fight against cyber-crime. Next, propose salient solution(s) for overcoming the challenges in question

What should be the increase in earnings per share : Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000. In addition, they paid $480,000 in interest to bondholders. Cayman has a 35% marginal tax rate. If Cayman's sales increase..

What are the names of the entities : What are the names of the entities? What is the disaster being addressed? Describe in two paragraphs (one paragraph per entity) the recovery work being conducted

Case analysis - netflix : Write a summary of the case study. Be sure to define entrepreneurs and the entrepreneurial mind-set and define strategic entrepreneurship and corporate entrepreneurship as it relates to the Netflix case study.

What is the firms cost of capital : Your firm recently paid a dividend of $4 to common stockholders. Dividends are expected to grow at 8% per year for the foreseeable future. The current stock price is $54. A $15 million bank line of credit is available with an interest rate of 9 perce..

The auto accident and disabled social security : (TCO E) Mr. Andy Gray had been injured in a car accident 5 years ago that left him paralyzed from the waist down, and confined to a wheelchair. Mr. Gray had been a skilled electronic technician for many years prior to his injury. After 5 years of liv..

User Account

All Pages