Long description

Capital Structure

Worst Case

EBIT = $10,000

Best Case

EBIT = $40,000

$ Change in EPS% Change in EPS
Plan A$2.50 $10.00 $7.50 300%
Plan B2.0012.0010.00500%% Change in EPS for Plan B is calculated as follows: $12 minus 2 divided by $2 equals 5 or 500%
Plan C1.514.0012.50833%

Get Financial Management: Principles and Applications, 13/e now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.