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A company currently has 3M shares outstanding, carries no debt, and its assets are valued...

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Finance

A company currently has 3M shares outstanding, carries no debt, and its assets are valued on the market at $60M. The companys financial chief proposes to raise $15M in debt at 10% annual rate for the purpose of share repurchase. Ignoring taxes, if EBIT is $8M, what are the earnings per share given the original capital structure?

A company currently has 2M shares outstanding, carries no debt, and its assets are valued on the market at $60M. The companys financial chief proposes to raise $15M in debt at 10% annual rate for the purpose of share repurchase. Ignoring taxes, what is the breakeven EBIT?

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