| Author: | Homework Help Classof1 | ISBN: | 1230000120847 |
| Publisher: | Classof1 | Publication: | April 10, 2013 |
| Imprint: | Language: | English |
| Author: | Homework Help Classof1 |
| ISBN: | 1230000120847 |
| Publisher: | Classof1 |
| Publication: | April 10, 2013 |
| Imprint: | |
| Language: | English |
Einstein Company currently has $800,000 owners’ equity and no long-term debt. Its expected income for 2009 is $100,000 and it is object to a 20 percent tax rate. What is Einstein’s planned return on equity? If Einstein issues $200,000 in debt it anticipates that the interest expense will be $14,000. However it expects to use this money and increase sales such that the income before interest and taxes will be $150,000. If Einstein issues the debt what is its planned return equity?
Einstein Company currently has $800,000 owners’ equity and no long-term debt. Its expected income for 2009 is $100,000 and it is object to a 20 percent tax rate. What is Einstein’s planned return on equity? If Einstein issues $200,000 in debt it anticipates that the interest expense will be $14,000. However it expects to use this money and increase sales such that the income before interest and taxes will be $150,000. If Einstein issues the debt what is its planned return equity?
