Celine asked in 商業與財經投資 · 1 decade ago

有關finace問題

Wine Widget company can finance a new project using debt or equity. Based on the EPS and probablities given below determine the best alternative. Explain your choice.

Financing

debt Probability EPS

0.1 1.50

0.2 1.70

0.4 1.90

0.2 2.00

0.1 2.10

Equity Probability EPS

0.1 1.45

0.2 1.50

0.4 1.75

0.2 1.80

0.1 1.90

Update:

需要祥細的計算過程

1 Answer

Rating
  • Favorite Answer

    expected EPS-debt=1.86, expected EPS-equity=1.70, we should choose to finance by debt.

Still have questions? Get your answers by asking now.