What will be the increase in earnings per share

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Reference no: EM131948792

1. Suppose the asset beta of a firm is 1, ND/E ratio is 1, risk free rate is 1%, market risk premium is 5%.

Calculate the expected return of your firm for new investors

2. A firm reports a net margin of 6.00%. The firm has 1,872,645.00 million shares outstanding. The firm has invested in a new product that will increase sales by $4,293,900.00 million this year.

What will be the increase in earnings per share?

Reference no: EM131948792

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