I need help with capital structure - here is an example...
total assets 150 million 150 million
debt 25 million 100 million
equity 125 million 50 million
common stock price $50.00 $50.00
number of shares 2,500,000 1,000,000
interest rate 12% 12%
The company expects next years EBIT to be 20 million / 25% higher or lower.
I just can not figure out which set of amounts to use to figure this out. Thank you for your advice.© BrainMass Inc. brainmass.com June 4, 2020, 12:19 am ad1c9bdddf
The solution explains how to do an EBIT/EPS analysis and assess the impact on capital structure.