FINA 395 Chapter Notes - Chapter 16: Scion Tc, Net Present Value, United States Treasury Security
Document Summary
A table outlining the income statement for the three possible states of the economy is shown below. The eps is the net income divided by the 5,000 shares outstanding. If the company undergoes the proposed recapitalization, it will repurchase: Shares repurchased = debt issued / share price. The interest payment each year under all three scenarios will be: The last row shows the percentage change in eps the company will experience in a recession or an expansion economy under the proposed recapitalization. A table outlining the income statement with taxes for the three possible states of the economy is shown below. The share price is , and there are 5,000 shares outstanding. The last row shows the percentage change in eps the company will experience in a recession or an expansion economy. +30: a table outlining the income statement with taxes for the three possible states of the economy and assuming the company undertakes the proposed capitalization is shown below.