Multiple Choice
A firm has a current capital structure consisting of $400,000 of 6 percent annual interest debt and 50,000 shares of common stock.The firm's tax rate is 21 percent on ordinary income.If the EBIT is expected to be $200,000,the firm's earnings per share will be ________.
A) $3.12
B) $0.74
C) $3.52
D) $2.78
Correct Answer:
Verified
Correct Answer:
Verified
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