EPS/EBIT Analysis Company B needs to raise SIB. The company senior executives are not concerned about a recession. There are basically two future earnings expectations. If business activity stays the same, Company B will earn $800 million dollars before interest and taxes. If business activity increases, it is projected that Company B will earn $1.2B dollars before interest and taxes. ced to make a recommendation regarding the best way to raise the $1B. Should the company issue additional stock or should the company borrow the money? Once you have calculated the necessary figures and compared your results, make a recommendation to Company B's Board of Directors. $ Amount Needed: $1000 (M) Stock Price: $20 per share Tax Rate: 40% Interest Rate: 5% Shares Outstanding: 466 (M) Common Stock Financing Normal Boom 800,000,000 1,200,000,000 Debt Financing Normal Boom 800,000,000 1,200,000,000 EBIT Interest EBT Taxes EAT # shares EPS The company should to raise the $1B