CCT has 5 million shares on issue each with a market price of $2.
CCT has 5 million shares on issue each with a market price of $2.50, they have no debt but are considering changing their capital structure by issuing $3 million of debt & using the entire proceeds to conduct a share buyback. Interest rate on debt is 10% p.a. & company tax rate is 30%. (a) Calculate EPS for both the current and the proposed capital […]
