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44 A firm has a current capital structure consisting of $200.000 in perpetual debt, borrowed at 9% annual interest rate, and 10.000 shares of common
44 A firm has a current capital structure consisting of $200.000 in perpetual debt, borrowed at 9% annual interest rate, and 10.000 shares of common stock. The tax rate is 40 percent on ordinary income. If the annual EBIT is expected to be $100.000, calculate the firm's annual earnings per share (EPS) [Express your answer in dollars and cents, rounded to the nearest penny (eg. 2.34)] EPS = $ What is the firm's degree of financial leverage (DFL? [Round your answer to 2 (two) decimal places (eg. 3.45)] DFL =
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