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Assume a firm generates $400,000 ebit annually pays 40% tax and has 80 ,000 shares outstanding calculate eps if the firm is decided to borrow

Assume a firm generates $400,000 ebit annually pays 40% tax and has 80 ,000 shares outstanding calculate eps if the firm is decided to borrow $250,000 at 9% interest and repurchase stock with the preced the current stock price is $25 a share
$3.00
$3.50
$3.24
$5.00

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