EPS corporate finance

来源:百度知道 编辑:UC知道 时间:2024/07/04 09:01:27
Biotechnology is a relatively new company on the Australian stock Exchange and is currently all-equity financed with 40 million shares on issue that are trading at a current market price of $8 per share. the company has a perpetual net operating income NOI of $50 million per annum and has been exempted from corporate taxation due to a Government ruling regarding the technology related nature of its operations. Assume you are operating in an environment consistent with the Modigliani and Miller M&M irrelevance theory

1.what are the current earning per share , cost of euity?

2.the company is considering the repurchase of 10 millon of its issued shares at the current market share price of $8, funded by an issue of perpetual corporate debentures. these debentures will carrying an 8% before-tax coupon interest rate and will be issued at a face value of $50,000 per debenture. what will be the value of the company? the EPS? the cost of equity and the overall cost of cap

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