Multiple Choice
Calculate EPS if a company,with 1 million shares with a market price of $4 each and zero debt,decides to buy back 25 per cent of its outstanding shares by borrowing at 10% p.a.Assume current earnings are $0.4 million and taxes do not apply.
A) $4
B) 53.3c
C) 40c
D) 66.6c
Correct Answer:
Verified
Correct Answer:
Verified
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