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5. Southland Industries has $60,000 of 6% (annual interest) bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5 per share, and

5. Southland Industries has $60,000 of 6% (annual interest) bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5 per share, and 4,000 shares of common stock outstanding. Assume the company has a tax rate of 21%, calculate the earnings per share (EPS) for the following EBIT levels: 

a. $24,600 b. $30,600 c. $35,000 d. $42,000

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