碰男华经海贸多大学 公司理财 7.Morton Industries is considering opening a new subsidiary in Boston,to be operated as a separate company.The company's financial analysts expect the new facility's average EBIT level to be $6 million per year.At this time,the company is considering the following two financing plans(use a 40 percent marginal tax rate in your analysis): Plan 1:Equity financing,Under this plan,2 million common shares will be sold at $10 each. Plan 2:Debt-equity financing.Under this plan,$10 million of 12 percent long-term debt and 1 million common shares at $10 each will be sold. a.Calculate the EBIT-EPS indifference point. b.Calculate the expected EPS for both financing plans. c.What factors should the company consider in deciding which financing plan to adopt? d.Which plan do you recommend the company adopt? 8.Myers Implements is attempting to develop and market a new garden tractor.Fixed costs to develop and produce the new tractor are estimated to be $10,000,000 per year.The variable cost to make each tractor has been estimated at $2,000.The marketing research department has recommended a price of $4,000 per tractor. a.What is the breakeven level of output for the new tractor? b.If management expects to generate a target profit of $2,000,000 from the tractor each year, how many tractors must be sold? 9.The Sweet Times Candy Company has the following equity accounts on its balance sheet: Common stock($1 par,500,000 shares)$500,000 Contributed capital in excess of par 2,000,000 Retained earnings 13.000.000 Total common stockholders'equity $15.500.000 The current market price of the firm's share is $50. a.If the firm declares a 10 percent stock dividend,what will be the impact on the firm's equity accounts？ b.If the firm currently pays no cash dividend,what is the impact of a 10 percent stock dividend on the wealth position of the firm'existing stockholders? c.If the firm currently pays a cash dividend of $1 per share and this per-share dividend rate does not change after the 10 percent stock dividend,what impact would you expect the stock dividend to have on the wealth position of existing shareholders? 10.The Emco Steel Company has experienced a slow(3 percent per year)but steady increase in earnings per share.The firm consistently has paid out an average of 75 percent of each year's earnings as dividends.The stock market evaluates Emco primarily on the basis of its dividend payout,because growth prospects are modest. Emco's management presents a proposal to the board of directors that would require the outlay of $50 million to build a new plant in the rapidly expanding Florida market.The expected annual return on the investment in this plant is estimated to be in excess of 30 percent,more than twice 第3页共4页公司理财 7. Morton Industries is considering opening a new subsidiary in Boston, to be operated as a separate company. The company’s financial analysts expect the new facility’s average EBIT level to be $6 million per year. At this time, the company is considering the following two financing plans (use a 40 percent marginal tax rate in your analysis): „ Plan 1: Equity financing, Under this plan, 2 million common shares will be sold at $10 each. „ Plan 2: Debt-equity financing. Under this plan, $10 million of 12 percent long-term debt and 1 million common shares at $10 each will be sold. a. Calculate the EBIT-EPS indifference point. b. Calculate the expected EPS for both financing plans. c. What factors should the company consider in deciding which financing plan to adopt? d. Which plan do you recommend the company adopt? 8. Myers Implements is attempting to develop and market a new garden tractor. Fixed costs to develop and produce the new tractor are estimated to be $10,000,000 per year. The variable cost to make each tractor has been estimated at $2,000. The marketing research department has recommended a price of $4,000 per tractor. a. What is the breakeven level of output for the new tractor? b. If management expects to generate a target profit of $2,000,000 from the tractor each year, how many tractors must be sold? 9. The Sweet Times Candy Company has the following equity accounts on its balance sheet: Common stock ($1 par, 500,000 shares) $ 500,000 Contributed capital in excess of par 2,000,000 Retained earnings 13,000,000 ----------------------- Total common stockholders’ equity $ 15,500,000 The current market price of the firm’s share is $50. a. If the firm declares a 10 percent stock dividend, what will be the impact on the firm’s equity accounts? b. If the firm currently pays no cash dividend, what is the impact of a 10 percent stock dividend on the wealth position of the firm’ existing stockholders? c. If the firm currently pays a cash dividend of $1 per share and this per-share dividend rate does not change after the 10 percent stock dividend, what impact would you expect the stock dividend to have on the wealth position of existing shareholders? 10. The Emco Steel Company has experienced a slow (3 percent per year) but steady increase in earnings per share. The firm consistently has paid out an average of 75 percent of each year’s earnings as dividends. The stock market evaluates Emco primarily on the basis of its dividend payout, because growth prospects are modest. Emco’s management presents a proposal to the board of directors that would require the outlay of $50 million to build a new plant in the rapidly expanding Florida market. The expected annual return on the investment in this plant is estimated to be in excess of 30 percent, more than twice 第 3 页 共 4 页