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%. The company would like to raise $2 million. 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

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%. The company would like to raise $2 million. 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

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 8P

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