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Complete the tables below using the following information about Petty enterprises: Petty currently has an all equity capital structure and is considering a new structure with 30% debt.

There are 3,000 common shares outstanding with a total market value of $150,000. The interest rate on the new debt will be 14%. Assume no taxes.

	Old Structure = 100% Equity
EBIT	20,000	35,000	50,000
Interest
Net Income

	New Structure = 75% Equity, 30% Debt
EBIT	20,000	35,000	50,000
Interest
Net Income

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92713146

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