Gabe's Market Is Comparing Two Different Capital Structures

question 5

Multiple Choice

Gabe's Market is comparing two different capital structures.Plan I would result in 11,000 shares of stock and $225,000 in debt.Plan II would result in 14,000 shares of stock and $150,000 in debt.The interest rate on the debt is 8 percent.Ignoring taxes,compare both of these plans to an all-equity plan assuming that EBIT will be $45,000.The all-equity plan would result in 20,000 shares of stock outstanding.Of the three plans,the firm will have the highest EPS with _____ and the lowest EPS with ____.

• A)Plan I; Plan II
• B)Plan I; all-equity plan
• C)Plan II; Plan I
• D)Plan II; all-equity plan
• E)all-equity plan; Plan I

Distinguish between different breathing-related sleep disorders and understand their causes.

Interpret the significance of Freud's theory on the interpretation of dreams and recall basic concepts related to drug classification and sudden infant syndrome.

Understand the characteristics, diagnosis, and implications of ADHD.

Grasp the concept of intelligence and its assessment.

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Definitions:

Statement Form

An expression using statement variables and connectives to state the logical form of an actual or possible statement.

Conditional

Involving or implying a condition in logic or mathematics, often expressed in "if... then..." statements that assert the dependency of one event or outcome on another.

Tautology

In logic, a statement that is true in every possible interpretation or a redundant expression that doesn't add informational value.

Disjunct

A component of a disjunction in logic, where the truth of any disjunct is sufficient for the truth of the disjunction.