BF Ltd plans to raise a net amount of $300 m to finance new equipment and working capital early in the next financial year. The company is considering to issue bonds with coupon rate of 14% per annum (paid annually) and face value of $1,000. Currently, the company has 20 million shares outstanding. The company's tax rate is 30%.

The balance sheet and income statement of BF prior to financing are as follows:

The next years projected sales are $2,700 million and EBIT is projected to be 15 % of sales.Assuming that the existing debt will remain outstanding, calculate the company's earnings per share (EPS) after issuing the new bonds

The balance sheet and income statement of BF prior to financing are as follows: Balance sheet $m $m Current assets 900 Accounts payable 300 Net fixed assets 450 Other current 350 liabilities Total current 650 liabilities Long-term debt 300 (10%) Common shares 100 ($5) Retained earnings 300 Total assets 1,350 Total liabilities and equity 1,350 Income statement $m Sales 2,500 Cost of sales 2,000 EBIT 500 Interest 30 EBT 470 Tax (30%) 141 Net income 329