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Consider a company with different EBIT for different states of the world: Bad = $15,000; Average = $20,000; and Good = $25,000. The company has
- Consider a company with different EBIT for different states of the world: Bad = $15,000; Average = $20,000; and Good = $25,000. The company has 1000 shares outstanding, and each share is valued at $300. The company is considering changing its capital structure to 50% debt which it can secure at 6%. What are the EPS for the company under each state of the world and under each capital structure (there are 6 total EPS)?
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
