Daddi Mac, Inc , doesnt face any taxes and has $247 20 million in assets, currently financed entirely with equity Equity is worth $32 per share, and book value of equity is equal to market value of equity Also, lets assume that the firms expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below State Recession Average Boom Probability of state 0 20 0 55 0 25 Expected EBIT in state $ 6,550,800 $ 11,433,000 $ 18,354,600 The firm is considering switching to a 20 percent debt capital structure and has determined that it would have to pay an 10 percent yield on perpetual debt in either event What will be the level of expected EPS if the firm switches to the proposed capital structure (Do not round intermediate calculations and round your final answer to 2 decimal places )

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Daddi Mac, Inc., doesnt face any taxes and has $247.20 million in assets, currently financed entirely with equity. Equity is worth $32 per share, and

Daddi Mac, Inc., doesnt face any taxes and has $247.20 million in assets, currently financed entirely with equity. Equity is worth $32 per share, and book value of equity is equal to market value of equity. Also, lets assume that the firms expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below:

State	Recession		Average		Boom
Probability of state		0.20		0.55		0.25
Expected EBIT in state	$	6,550,800	$	11,433,000	$	18,354,600

The firm is considering switching to a 20-percent-debt capital structure and has determined that it would have to pay an 10 percent yield on perpetual debt in either event. What will be the level of expected EPS if the firm switches to the proposed capital structure? (Do not round intermediate calculations and round your final answer to 2 decimal places.)