Check my work Data Number of shares Price per share Market value of shares 2,500 25 $ 62,500 Although it expects to have an income of $3,000 a year in perpetuity, this income is not certain. This table shows the return to stockholders under different assumptions about operating income. We assume no taxes. Outcomes Operating income ($) 2,e00 2,500 3,e00 3,500 Suppose that Macbeth Spot Removers issues only $6,750 of debt and uses the proceeds to repurchase 270 shares. The interest rate on the debt is 7%. a. Calculate the equity earnings, earnings per share, and return on shares for each operating income assumption. (Input all values as a positive number. Round your "Earnings per share" answers to 2 decimal places. Enter your "Return on shares" answers as a percent rounded to 2 decimal places. Round the other answers to the nearest whole niumhor)

Check my work Data Number of shares Price per share Market value of shares 2,500 25 $ 62,500 Although it expects to have an income of $3,000 a year in perpetuity, this income is not certain. This table shows the return to stockholders under different assumptions about operating income. We assume no taxes. Outcomes Operating income ($) 2,e00 2,500 3,e00 3,500 Suppose that Macbeth Spot Removers issues only $6,750 of debt and uses the proceeds to repurchase 270 shares. The interest rate on the debt is 7%. a. Calculate the equity earnings, earnings per share, and return on shares for each operating income assumption. (Input all values as a positive number. Round your "Earnings per share" answers to 2 decimal places. Enter your "Return on shares" answers as a percent rounded to 2 decimal places. Round the other answers to the nearest whole niumhor)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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