Continental Careers
Autor: moto • February 19, 2012 • Essay • 309 Words (2 Pages) • 1,887 Views
Continental Carriers
1. As Ms. Thorp, treasurer of CCI, appraise the costs of the common stock issue.
2. How should the acquisition of Midland Freight be financed, taking into account the cost comparisons and other appropriate considerations?
3. Consider the EBIT Chart. What information does it provide? What inferences can we draw from it?
a. Why do the lines for the stock plan and the bond plan have different slopes?
b. Why are earnings per share equal under the two plans at an EBIT level of $125 mm.
c. Why does the stock plan line pass through the origin, while the bond plan line intersects the horizontal axis at $5mm? What is the significance of the later intersection?
4. What financing alternative is best for shareholders?
Continental Carriers
1. As Ms. Thorp, treasurer of CCI, appraise the costs of the common stock issue.
2. How should the acquisition of Midland Freight be financed, taking into account the cost comparisons and other appropriate considerations?
3. Consider the EBIT Chart. What information does it provide? What inferences can we draw from it?
a. Why do the lines for the stock plan and the bond plan have different slopes?
b. Why are earnings per share
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