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Caterpillar Corporation is an unlevered firm with a total market value of $ 3 , 9 0 0 , 0 0 0 with 6 0
Caterpillar Corporation is an unlevered firm with a total market value of $ with shares of stock outstanding. The firm has expected EBIT of $ if the economy is normal and $ if the economy booms. The firm is considering a $ bond issue with an attached interest rate of percent. The bond proceeds will be used to repurchase shares. Ignore taxes. What will the earnings per share EPS be after the repurchase if the economy booms?
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