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Business, 28.06.2019 07:00 julie47d

Sterling optical and royal optical both make glass frames and each is able to generate earnings before interest and taxes of $168,000. the separate capital structures for sterling and royal are shown here: sterling royal debt @ 12% $ 840,000 debt @ 12% $ 280,000 common stock, $5 par 560,000 common stock, $5 par 1,120,000 total $ 1,400,000 total $ 1,400,000 common shares 112,000 common shares 224,000.compute earnings per share for both firms. assume a 25 percent tax rate.

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