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BMW $300,000 $700,000 AUDI Debt @ 7% Common Stock @ $3.00 Per Share Total Debt @ 5% Common Stock @ $3.50 per Share TOTAL #

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BMW $300,000 $700,000 AUDI Debt @ 7% Common Stock @ $3.00 Per Share Total Debt @ 5% Common Stock @ $3.50 per Share TOTAL # Shares of Common Stock $700,000 $300,000 $1,000,000 200,000 $1,000,000 100,000 Compute the Earnings Per Share (EPS) fro both BMW and AUDI at an Earnings Before Interest & Taxes of $400,000 and a tax rate of 30%. A. A. BMW $ 1.98, AUDI $5.60 B.B. BMW $1.35, AUDI $2.46 C.C. BMW $ 2.46, AUDI $ 1.35 D.D. None of the above BMW $300,000 $700,000 AUDI Debt @ 7% Common Stock @ $3.00 Per Share Total Debt @ 5% Common Stock @ $3.50 per Share TOTAL # Shares of Common Stock $700,000 $300,000 $1,000,000 200,000 $1,000,000 100,000 Which company, BMW or AUDI has higher Net Income (Earnings After Tax) at an Earnings Before Interest and Taxes (EBIT) of $400,000 and tax rate of 30%? A. A.BMW B. B. AUDI C.C. They are the same. D.D. Need more information BMW AUDI $300,000 $700,000 $700,000 $300,000 Debt @ 5% Common Stock @ $3.50 per Share TOTAL # Shares of Common Stock Debt @ 7% Common Stock @ $3.00 Per Share Total $1,000,000 200,000 $1,000,000 100,000 Which firm has the higher Earnings Per Share (EPS)? A. A. BMW B. B. AUDI C.C. They are the same OD.D. Need more information

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