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Change Corp.'s management has decided to repurchase some of the company's shares. The company has 3,000,000 shares outstanding that trade at $35.00 per share. It
Change Corp.'s management has decided to repurchase some of the company's shares. The company has 3,000,000 shares outstanding that trade at $35.00 per share. It plans to repurchase 500,000 shares at $35.00 and will use debt to finance the repurchase at an interest rate of 8.0%. The company's EBIT is $4,200,000.
Ignoring income taxes what are the earnings per share before and after the repurchase?
Group of answer choices
$1.68 before and $1.00 after
$1.20 before and $1.36 after
$.93 before and $1.40 after
$1.40 before and $1.12 after
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