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For the year ended 2020,ABC Company has $1,250,000 of debt with an annual interest rate of 8,9%,$2,000,000 of preferred stock with an annual preferred dividend

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For the year ended 2020,ABC Company has $1,250,000 of debt with an annual interest rate of 8,9%,$2,000,000 of preferred stock with an annual preferred dividend rate of 9.1 $3,500,000 of cornmon stock (total book value), and 250,000 common shares outstanding In 2021, the company plans to raise $00,000 extemal capital to fund a now project through a term loan with an interest rate of 875 . The new loan's sinking fund provision requires the loan to be fully amortized over the next 5 years, commencing in 2022 . The company expects that the exkting debt and preferred stock will not be retined until the year 2026; hence, they will remain in the came amount in 2021 . If the project goes as plunned, the compary eopects $1,200,000 of EBrT in 2021. The companys tax rate is 4005 . What wil the expected eamings per share under the new debt alternatwe be? (Hint Perform Eart-EPS. Analyis in the long-term financing decisions) 51.95 S1A8 $1.92 S189 For the year ended 2020,ABC Company has $1,250,000 of debt with an annual interest rate of 8,9%,$2,000,000 of preferred stock with an annual preferred dividend rate of 9.1 $3,500,000 of cornmon stock (total book value), and 250,000 common shares outstanding In 2021, the company plans to raise $00,000 extemal capital to fund a now project through a term loan with an interest rate of 875 . The new loan's sinking fund provision requires the loan to be fully amortized over the next 5 years, commencing in 2022 . The company expects that the exkting debt and preferred stock will not be retined until the year 2026; hence, they will remain in the came amount in 2021 . If the project goes as plunned, the compary eopects $1,200,000 of EBrT in 2021. The companys tax rate is 4005 . What wil the expected eamings per share under the new debt alternatwe be? (Hint Perform Eart-EPS. Analyis in the long-term financing decisions) 51.95 S1A8 $1.92 S189

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