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Author Question: You are a buy-side analyst researching the Gorilla Glass Co. Gorilla plans to borrow $11 million by ... (Read 76 times)

HudsonKB16

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on: Apr 25, 2021
You are a buy-side analyst researching the Gorilla Glass Co. Gorilla plans to borrow $11 million by issuing bonds with an annual coupon of 7% and a yield to maturity of 7%. Gorilla will use the borrowed money to repurchase shares on the open market at $40 per share. You have gathered the information, shown in the table, regarding the company prior to the repurchase. You estimate that EBIT for Year 1 will be the same as reported for Year 0. Assume that the money is borrowed and the repurchase is executed at the beginning of Year 1.

Gorilla Glass Co.
Dec 31, Year 0
EBIT$10,331,538
Tax Rate35%
Shares Outstanding3,000,000
EPS$2.5
Debt$0
Stock Price$40
What is the Year 1 EPS?
◦ $2.00
◦ $2.28
◦ $2.80
◦ $3.25
◦ $3.52
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by HudsonKB16 on Apr 25, 2021

blfontai

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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HudsonKB16

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Reply 2 on: Apr 25, 2021
Excellent

matt95

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Reply 3 on: Yesterday
:D TYSM

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