Yang Centers Wants to Report at Least $1 A) $457,142
B) $520,050
C) $2,800,000
D) $3,461,538

question 131

Multiple Choice

Yang Centers wants to report at least $1.75 in earnings per share. Given the following information, how much debt should be in its capital structure? $\begin{array}{ll}\text { Book value per share: } & \$ 8.75 \\\text { Cost of debt: } & 10 \text { percent } \\\text { EBIT: } & \$ 500,000 \\\text { Tax bracket: } & 30 \text { percent } \\\text { Total Capital: } & \$ 4,000,000\end{array}$

• A) $457,142
• B) $520,050
• C) $2,800,000
• D) $3,461,538

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Definitions:

Transportation Cost

Expenses related to the movement of goods or materials from one location to another, including shipping, freight, and logistics costs.

Vidalia Onions

A variety of sweet onion grown exclusively in a specific region of Georgia, known for its mild flavor.

Safety Inventory

Additional stock that is kept to prevent stockouts and ensure smooth production or sales processes in the face of demand variability.

Holding Cost

The expense associated with storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.