A firm has a capital structure that is half debt and half


A firm has a capital structure that is half debt and half common equity and totals $120,000,000.

Sales are $180,000,000 with variable costs equal to 60% of sales and fixed operating costs of $30,000,000. It has 2,500,000 shares of common stock outstanding and interest on debt is 12%. If the corporate tax rate is 40%, find the EBIT, NI, BEP , ROE, and EPS.

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Financial Accounting: A firm has a capital structure that is half debt and half
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