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Consider two companies in a worfd with no taxes that are alike except in borrowing chicices. Datrict Corp. has no debt finanoing, and Energy Corp.

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Consider two companies in a worfd with no taxes that are alike except in borrowing chicices. Datrict Corp. has no debt finanoing, and Energy Corp. Uses debt financing. The EBrt for both comparies is $2,500,000. District Comp. has 500,000 thares outstanding and pays no interest. Energy Corp. has 350,000 ahares outatanding and parts $1,000,000 in insorest. What is the EPS for each company? A. Dutrict Corp, has an EPS of 55.00 and Energy Corp has an EPS of 5429 . B. Bcth conpanies have an EPS of 55.71. C. District Cop. has an eps of 5571 and Energy Corp. has an EPS of 55.00. D. Boh comparies have an EPS of 55.00

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