1. Which of the following is not required to calculate breakeven EBIT? a) EBIT b) Coupon rate c shares outstanding with debt d) shares outstanding with equity
2. The current earnings-per-share of a corporation is $2. The implied price-earning ratio is 25. The present value of future cash flows per share is
3. Balfour Corporation has a current stock price of $20. Next year’s dividend is projected to be $5.00. The payout ratio is 25% and projected ROE is 20%. The cost of equity is