YeeMee Berhad, a producer of instant noodles, is in this situation. = RM4.0 million = 25% EBIT Tax Rate Debt outstanding Kd Ks = 10% = 15% Share outstanding = 600000 Book value per share = RM10.00. RM2.0 million The company expects no growth, all earnings are paid out as dividends. The debt consists of perpetual bonds. Required: a) What are YeeMee's earnings per share (EPS) and its price per share (Po)? and What is YeeMee's weighted average cost of capital (WACC)?
YeeMee Berhad, a producer of instant noodles, is in this situation. = RM4.0 million = 25% EBIT Tax Rate Debt outstanding Kd Ks = 10% = 15% Share outstanding = 600000 Book value per share = RM10.00. RM2.0 million The company expects no growth, all earnings are paid out as dividends. The debt consists of perpetual bonds. Required: a) What are YeeMee's earnings per share (EPS) and its price per share (Po)? and What is YeeMee's weighted average cost of capital (WACC)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Question 2
YeeMee Berhad, a producer of instant noodles, is in this situation.
EBIT
RM4.0 million
Tax Rate
Debt outstanding
Kd
Ks
= 25%
= RM2.0 million
= 10%
=
15%
Share outstanding = 600000
Book value per share = RM10.00.
The company expects no growth, all earnings are paid out as dividends. The debt consists of
perpetual bonds.
Required:
a) What are Yee Mee's earnings per share (EPS) and its price per share (Po)? and What is YeeMee's
weighted average cost of capital (WACC)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6bce547-bed6-4db4-b5c7-ad7c62e65c75%2F09386f7b-fe99-4fb5-ba4d-a96a9bb7e852%2Fwasxai8_processed.gif&w=3840&q=75)
Transcribed Image Text:Question 2
YeeMee Berhad, a producer of instant noodles, is in this situation.
EBIT
RM4.0 million
Tax Rate
Debt outstanding
Kd
Ks
= 25%
= RM2.0 million
= 10%
=
15%
Share outstanding = 600000
Book value per share = RM10.00.
The company expects no growth, all earnings are paid out as dividends. The debt consists of
perpetual bonds.
Required:
a) What are Yee Mee's earnings per share (EPS) and its price per share (Po)? and What is YeeMee's
weighted average cost of capital (WACC)?
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