please use excel and show formulas Nugyen owns 200 shares...
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please use excel and show formulas
Nugyen owns 200 shares of a company whose capital structure was leveraged with 50% debt. The company has 2,380,000 shares outstanding that sell for $10 per share. Under the leveraged capital structure, the shares generate $0.90 dividend (which is 100% of EPS) each. The company plans on restructuring its capital to 100% equity which will drop its EPS to 50.775 . If the cost of debt is 6.5%, how much debt will Nguyen need to take on to recreate the same dividend cash flow he received under the leveraged company? Ienore taxos and assume 100% dividend payout policy. 42.36000 $1.650.00 \$1,800,00 $2.800,00 82000.00
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