Share
Explore BrainMass

Compute earnings per share if earnings before interest and taxes are $10,000, $15,000 and $50,000 (assume a 30% tax rate).

Need to really see how the formula is calculated on this word problem.

Compute earnings per share if earnings before interest and taxes are $10,000, $15,000 and $50,000 (assume a 30%tax rate).

Explain the relationship between earnings per share and the level of EBIT.

If the cost of debt went up to 12% and all other factors remained equal, what would be the break-even level for EBIT?
Please see ** ATTACHED ** file(s) for complete details!!

Attachments

Solution Summary

You will find the answer to this puzzling question inside...

$2.19