Multiple Choice
Harris Inc. has EBIT of $1,500 and debt of $5,000 on which it pays 12% interest. Its EPS is currently $2.35 per share. Management anticipates a difficult period ahead and fears EBIT could decline by as much as 20%. What will the new EPS be if that happens?
A) $1.88
B) $1.41
C) $1.57
D) Can't tell from the information given
Correct Answer:
Verified
Correct Answer:
Verified
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