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CH10 Long Term Decision Payongayong-3

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.

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Nadi Hood
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1K views1 page

CH10 Long Term Decision Payongayong-3

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.

Uploaded by

Nadi Hood
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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

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