You are given the following information about Aisha Enterprises. The company would like to raise capital through shares only. It has five alternative operational periods in which to raise funds.  The company has 25,000 ordinary shares at $10 per share. It has 2500 preference shares of $ 100 each. The dividend on preference shares is 8%. The tax rate is 25 % and the interest rate is 15% . You are required to complete an EBIT/EPS Analysis for the company.                                            A                     B                          C                           D                         E EBIT    400,000    600,000    700,000      800,000    900,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
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You are given the following information about Aisha Enterprises. The company would like to raise capital through shares only. It has five alternative operational periods in which to raise funds.  The company has 25,000 ordinary shares at $10 per share. It has 2500 preference shares of $ 100 each.

The dividend on preference shares is 8%. The tax rate is 25 % and the interest rate is 15% . You are required to complete an EBIT/EPS Analysis for the company.

  

                                        A                     B                          C                           D                         E

EBIT

   400,000

   600,000

   700,000

     800,000

   900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

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