Earnings Per Share Formula (EPS)

EBIT and Leverage (LO1) Charny Inc. has no debt outstanding and a total market value of 165,000. Earnings before interest and taxes, EBIT, are projected to be 21,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower. Charny is considering a 60,000 debt issue with a 7 percent interest rate. The proceeds will be used to repurchase shares of stock. There are currently 5,

Interest Coverage Ratio: What It Is, Formula, and What It Means for Investors

A project will cost Rs. 40,000. Its stream of earnings before depreciation, interest and taxes (EBIT) during the first year through the fifth year is expected to be Rs. 12,000, Rs. 14,000, Rs. 16,000, Rs. 20,000, and Rs. 22,000. Assuming a 50% tax rate and Rs. 7,000 for depreciation on a straight-line basis, find the average rate of return.

Businesses are sold based on a multiple of earnings(EBITDA). EBITDA is Earnings Before Interest Taxes Depreciation & Amortization. Growing and selling a business is a fast path to creating real wealth. Want to get rich af? Learn this sh*t. | Eric Spofford