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EPS, Debt-to-Equity, Breakeven point LexMart maintains a debt-to-equily ratio of 1.0 regartess of whether the firm experiences expansion or contraction At the present time, LexMart

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EPS, Debt-to-Equity, Breakeven point LexMart maintains a debt-to-equily ratio of 1.0 regartess of whether the firm experiences expansion or contraction At the present time, LexMart has $1.000 par vatue bonds outstanding that pay 9% annual interest. The firm also has 2.4 million shares of common stock outstanding that sells for $21 per share. a. Based on LexMarts current annual NOP of $23,500,000 and its corporate tax rate of 20%, what is its EPS? b. If LexMart would like to finance a $61 milion expansion while maintaining is current debt-40-equity raso of 10 , how many bonds at $1,000 per bond and shares of stock wit it have to sell to pay for the expansion? c. Ahet the expansion, what level of annual NOP wil LexMart have to generate to maintain is curtent level of EPS? a. LexMarts current EPS is $ (Round to three decimal places.)

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