1.Calculate EBIT

2. Analytical income statement EPS

3.Graph EPS/EBIT

4. How to finance if EBIT

- is 1,000,000

- is 2,000,000

In-class Problem . Plan A: sell 1,200,000 shares at $10 per share (S12 million total) Plan B: issue $3.5 million in 9% debt and sell 850,000 shares at $10 per share ($12 million total) Assume a marginal tax rate of 50%