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  1. business
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  3. king lyon has the following assets: current assets

King Lyon has the following assets: Current assets $2,500,000 Capital assets 7,500,000 Total assets $10,000,000...

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Accounting

King Lyon has the following assets: Current assets $2,500,000 Capital assets 7,500,000 Total assets $10,000,000 During 4 months of the year, current assets drop to $1,000,000 (total assets will then be $8,500,000). Its operating profit (EBIT) is expected to be $486,500. Its tax rate is 20 percent. Shares are valued at $17. Its capital structure is shortterm financing at 2 percent and longterm financing of 40 percent equity, 60 percent debt at 4 percent.

ANSWER: 1.04

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