问题如下：
Based on Exhibit 1, if Yeta’s management implemented Proposal #3 at the current share price, earnings per share would:
选项：
A.decrease.
B.remain unchanged.
C.increase.
解释：
C is correct. In the case of external funding, a company’s earnings per share will increase if the stock’s earnings yield, which is the ratio of earnings per share to share price, exceeds the after-tax cost of borrowing. Yeta’s earnings yield is 9.10% (= $1.82/$20.00), which exceeds the after-tax cost of borrowing of 8.50%.
A is incorrect because EPS will increase (not decrease) if the stock’s earnings yield (= $1.82/$20.00) exceeds the after-tax cost of borrowing. Yeta’s earnings yield of 9.10% exceeds the after-tax cost of borrowing of 8.50%.
B is incorrect because EPS will increase (not remain unchanged) if the stock’s earnings yield (= $1.82/$20.00) exceeds the after-tax cost of borrowing. Yeta’s earnings yield of 9.10% exceeds the after-tax cost of borrowing of 8.50%.
这道题是用ROE和cost of debt比较。 请问为什么计算ROE＝NI／E，不是用每股的book value 25.6而是除以market price 20?
