If zybeck issues common stock this year what will be the


Zybeck Corp. projects operating income of $4 million next year. The firm%u2019s income tax rate is 40%. Zybeck presently has 750,000 shares of common stock which have a market value of $10 per share, no preferred stock, and no debt. The firm is considering two alternatives to finance a new product: (a) the issuance of $6 million of 10% bonds, or (b) the issuance of 60,000 new shares of common stock. If Zybeck issues common stock this year, what will be the projected EPS next year?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: If zybeck issues common stock this year what will be the
Reference No:- TGS0622827

Expected delivery within 24 Hours