Problem 17-03, Macbeth Spot Removers Issues Debt & Repurchases Shares
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
They give you the data on their equity financing along with the number of shares they bought back using debt and ask you to determine the operating income, interest, equity earnings, earnings per share, and return on shares. Then they ask you to determine the all equity beta, debt beta, debt to equity ratio, and lastly the equity beta.
Calculator Preview
Your numbers will vary.