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Assume the Following Facts About a Company: What Will

Question 23

Multiple Choice

Assume the following facts about a company: Assume the following facts about a company: What will be the company's new EPS if it borrows money at 10% interest and uses it to retire stock until capital is 40% debt? The stock can be purchased at its book value of $10 per share. A) $3.33 B) $4.89 C) $2.93 D) None of the above What will be the company's new EPS if it borrows money at 10% interest and uses it to retire stock until capital is 40% debt? The stock can be purchased at its book value of $10 per share.


A) $3.33
B) $4.89
C) $2.93
D) None of the above

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