Consider a firm with an EBIT of $553,000 The firm finances its assets with $1,030,000 debt (costing 5 8 percent and is all tax deductible) and 203,000 shares of stock selling at $14 00 per share The firm is considering increasing its debt by $900,000, using the proceeds to buy back 78,000 shares of stock The firm's tax rate is 21 percent The change in capital structure will have effect on the operations of the firm Thus, EBIT will remain at $553,000 Calculate the change in the firm's EPS from this change in capital structure Note Round your answers to 2 decimal places

Question

Consider a firm with an EBIT of $553,000  The firm finances its assets with $1,030,000 debt (costing 5 8 percent and is all tax deductible) and 203,000 shares of stock selling at $14 00 per share  The firm is considering increasing its debt by $900,000, using the proceeds to buy back 78,000 shares of stock  The firm's tax rate is 21 percent  The change in capital structure will have effect on the operations of the firm  Thus, EBIT will remain at $553,000  Calculate the change in the firm's EPS from this change in capital structure  Note  Round your answers to 2 decimal places

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Question

Consider a firm with an EBIT of $553,000. The firm finances its assets with $1,030,000 debt (costing 5.8 percent and is all tax deductible) and

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