Leverage Indifference. Top Corp. is considering a restructuring. Currently, it is all-equity financed with
7,000,000
ordinary shares outstanding traded at
$47
per share on the market. It is planning to borrow
$7,250,000
at an annual interest rate of
9%
to buy back some of its shares. Top has a tax rate of
34%
a. The leverage-indifference EBIT is s Number Round your answer to the dollar. b. The leverage-indifference EPS is s Number Round your answer to the cent. Remaining Time:
01:56:50
Two stages explicit dividents. Reliable Motors shares are expected to pay dividends of
$1.65,$1.70
, and
$1.20
at the end of each of the next three years, respectively. The investor expects the price of the shares at the end of this 3-year holding period to be
$51.00
. The investor's required rate of return is
10%
. Calculate the current value of Reliable's shares. Round your answer to the nearest cent