Yang Centers Has a Book Value of $8

question 151

Multiple Choice

Yang Centers has a book value of $8.75, a 10% cost of debt, operating income of $500,000, and a 30% tax rate. If Yang Centers finances 75% of its $4 million of total capital needs with debt, what is its earnings per share?

• A)$0.88
• B)$1.22
• C)$1.75
• D)$2.21

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Definitions:

Right To Disaffirm

The legal ability to void or cancel a contract or agreement, especially in cases involving minors or where fraud is detected.

Protect Minors

Measures or laws designed to safeguard children and teenagers from harm and exploitation.

Misrepresents His Age

The act of someone falsifying their age, typically to gain access to rights, products, or services restricted to those of a certain age.

Disaffirm It

The act of rejecting or voiding a legal contract or agreement, especially one entered into by minors or under duress which can be legally disaffirmed.