Your corporation is currently​ all-equity financed with 400,000 shares of common stock selling for ​$37 a share. Currently your firm generates $3,000,000 in EBIT annually and has a 32​% dividend payout ratio. Your​ firm's tax rate is 35​%.   a. What is your​ firm's current earnings per share and dividend per​ share? b. Your firm is considering financing an expansion with a bond issue of ​$8,500,000 that will pay 5.7​% annually in interest. If the expansion increases your​ firm's EBIT to $5,500,000​, what will be your​ firm's new​ debt-to-equity ratio,​ EPS, and dividend per share? c. If the expansion is instead financed with an issue of new​ stock, what will be your​ firm's new EPS and dividend per​ share?   a. Calculate the​ firm's current earnings per share​ (EPS) and dividend per share​ (DPS) below:  ​(Round to the nearest dollar except for the EPS and DPS which should be rounded to the nearest​ cent.)

Consider a firm with an EBITDA of $1,100,000 and an EBIT of $1,000,000. The firm finances its assets with $4,640,000 debt (costing 8.4 percent, all of which is tax deductible) and 214,000 shares of stock selling at $12 per share. To reduce risk associated with this financial leverage, the firm is considering reducing its debt by $2,640,000 by selling additional shares of stock. The firm’s tax rate is 21 percent. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $1,000,000. Calculate the EPS before and after the change in capital structure and indicate changes in EPS.

Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common stock currently pays a $2.50 dividend per share (D0 = $2.50). The stock's price is currently $34.75, its dividend is expected to grow at a constant rate of 8% per year, its tax rate is 25%, and its WACC is 13.35%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places.

Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 12%, and its common stock currently pays a $2.00 dividend per share (D0 = $2.00). The stock's price is currently $26.00, its dividend is expected to grow at a constant rate of 6% per year, its tax rate is 25%, and its WACC is 13.30%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places.

According to GAAP, your firm has equity worth $6billion, debt worth $4 billion, assets worth $10 billion. The market values your firm's 100 million shares at $75 per share and the debt at $4 billion. What is the market value of your assets?