Flagstaff Industries Inc. has determined that its EBIT for the coming year is approximately normally distributed with an expected value of $1.75 million and a
Flagstaff Industries Inc. has determined that its EBIT for the coming year is approximately normally distributed with an expected value of $1.75 million and a standard deviation of $1.2 million. Given its current capital structure, Flagstaff has $250,000 in interest obligations due during the coming year. Determine the probability that Flagstaff will have negative EPS.
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Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
