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Title: Zheng Sen's Chinese Take-Out had earnings before interest and taxes of $4,000,000 last year. The ... Post by: pompa on Mar 7, 2017 Zheng Sen's Chinese Take-Out had earnings before interest and taxes of $4,000,000 last year. The firm has a marginal tax rate of 40 percent and currently has the following capital structure:
(a) Calculate the firm's after-tax return on equity (ROE) and earnings per share (EPS). (b) If the firm retires $4,000,000 of preferred stock using the proceeds from an equal increase in long-term debt, what would have been the after-tax return on equity (ROE) and earnings per share (EPS)? (c) If the firm retires $4,000,000 of preferred stock using the proceeds from the sale of 500,000 shares of common stock, what would have been the after-tax return on equity (ROE) and earnings per share (EPS)? Title: Re: Zheng Sen's Chinese Take-Out had earnings before interest and taxes of $4,000,000 last year. ... Post by: Ulain on Mar 7, 2017 Content hidden
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