3 Summer Tan, Inc., is an all-equity firm with a total market value of $586,000 and 39,500 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $83,700 if the economy is normal. If there is a recession, EBIT will be 15 percent lower, and if there is a boom, EBIT will be 25 percent higher. The tax rate is 40 percent. What is the EPS in a boom? Multiple Choice O O O O $1.59 $.95 $1.46 $1.27 $1.08

Summer Tan, inc. is an al-eyty firm with a toum maket value of $586,000 and 39.500 sheres of stock outatanding Monogement believes be eaenings before interest and taves ceBin will be 583.700 if the econony is normal it there is a recesson, EBit will be 75 pecceot lowec and it there is a boon, Eaif wil be 25 percent higher the tax tate is 40 percent. What is the EPs in a bocm? Mupenchee 3ist 345 12 s10e