There are no taxes. EBIT is expected to be $2.5 million, but could be as high as $3.5 million if an economic expansion occurs, or as low as $2 million if a recession occurs. All values are market values.

How many shares are outstanding under the proposed capital structure?
A) 100,000
B) 200,000
C) 300,000
D) 400,000
E) 500,000

Question

There are no taxes. EBIT is expected to be $2.5 million, but could be as high as $3.5 million if an economic expansion occurs, or as low as $2 million if a recession occurs. All values are market values.

How many shares are outstanding under the proposed capital structure?

How many shares are outstanding under the proposed capital structure?
A) 100,000 
B) 200,000 
C) 300,000 
D) 400,000 
E) 500,000

Quizplus · Accepted Answer

The Answer of  There are no taxes. EBIT is expected to be $2.5 million, but could be as high as $3.5 million if an economic expansion occurs, or as low as $2 million if a recession occurs. All values are market values.

How many shares are outstanding under the proposed capital structure?
A) 100,000 
B) 200,000 
C) 300,000 
D) 400,000 
E) 500,000

There Are No Taxes