Scribd Logo
Upload

Welcome to Scribd!

  • 811 views

    CH10 Long Term Decision Payongayong-3

    Uploaded by

    Nadi Hood
    The document contains calculations to determine EBIT, EPS, cash and liability amounts, projected EPS, return on equity, and sales, variable costs, revenue, fixed costs, and EBIT for a company. It uses equations with numbers and variables like EBIT, tax rates, number of shares, costs, and revenues to perform the calculations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    CH10 Long Term Decision Payongayong-3

    Uploaded by

    Nadi Hood
    811 views1 page
    The document contains calculations to determine EBIT, EPS, cash and liability amounts, projected EPS, return on equity, and sales, variable costs, revenue, fixed costs, and EBIT for a company. It uses equations with numbers and variables like EBIT, tax rates, number of shares, costs, and revenues to perform the calculations.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains calculations to determine EBIT, EPS, cash and liability amounts, projected EPS, return on equity, and sales, variable costs, revenue, fixed costs, and EBIT for a company. It uses equations with numbers and variables like EBIT, tax rates, number of shares, costs, and revenues to perform the calculations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    811 views1 page

    CH10 Long Term Decision Payongayong-3

    Uploaded by

    Nadi Hood
    The document contains calculations to determine EBIT, EPS, cash and liability amounts, projected EPS, return on equity, and sales, variable costs, revenue, fixed costs, and EBIT for a company. It uses equations with numbers and variables like EBIT, tax rates, number of shares, costs, and revenues to perform the calculations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 1

    4*(EBIT) - P36,000 = 6*(EBIT) - P630,000

    2*(EBIT) = P630,000 - P36,000 = P594,000.


    EBIT = P594,000 / 2 = P297,000
    297,000

    9. A
    EPS (EBIT - I) *(1-T)/S
    (297,000 - 9,000) *(1-
    0.34)/60,000
    288,000 * 0.66 / 60,000
    190,080 / 60,000
    3.17
    10. C
    Delta,
    Cash 1,000,000 + 2,500,000
    3,500,000
    Liability 3,000,000
    500,000
    11. B
    Projected
    EPS (EBIT-I)*(1-Tax %)/Shares
    Total Shares 810,000 = 750,000 CS+ 60,000 New CS
    4,000,000*(1-0,40)/810,000
    2,400,000/810,000
    2.96

    12. D
    Return on Equity Net Income/Equity
    4,000,000/135,000
    29.6

    13. A

    Sales (150,000 units * 10 SP) 1,500,000

    Variable Cost (150,000 units*6.50 VC) 975,000

    Revenue before FC 525,000

    Fixed Cost 155,000

    Base Level EBIT 370,000

    You might also like