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can you please try to answer in 60min? Continue from the previous question. Assume no taxes, no bankruptcy costs. Company U has no debt outstanding.

can you please try to answer in 60min? image text in transcribed
Continue from the previous question. Assume no taxes, no bankruptcy costs. Company U has no debt outstanding. The market value is 422124, earnings before interest and taxes (EBIT) is 55794 and the share price is 46. Company U is considering a 205301 debt issue with a 6% interest rate (the proceeds are used to buy back the shares). Calculate earnings per share (EPS) after the debt issue

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