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ABC Company is currently an all-equity firm that has 25,000 shares of stock outstanding at a market p of $10 per share. The company's EBIT

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ABC Company is currently an all-equity firm that has 25,000 shares of stock outstanding at a market p of $10 per share. The company's EBIT is $20,000. The company is thinking of issuing S150,000 of det a 6% rate of interest and using the proceeds to repurchase shares of stock. It is a perfect capital market. 13. What would be the EPS of the firm under the proposed capital structure? A) $1.10 B) S0.50 C) -$5.20 D) $0.80 E) There is not enough information to

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