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15) Assume a firm generates $500,000 EBIT annually, pays 30% tax rate, and has 100,000 shares outstanding (prior to recapitalization). Calculate EPS if the firm
15) Assume a firm generates $500,000 EBIT annually, pays 30% tax rate, and has 100,000 shares outstanding (prior to recapitalization). Calculate EPS if the firm decided to borrow $500,000 at 10% interest and repurchases stock with the proceeds. The current stock price is $55/share.
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