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GAMESHOP CORP has provided the following information: Operating income in the coming year: $2.5 million Standard deviation: $800,000 Interest charges in the coming year: $1.2

GAMESHOP CORP has provided the following information:

Operating income in the coming year: $2.5 million

Standard deviation: $800,000

Interest charges in the coming year: $1.2 million

Preferred divided: $300,000

Marginal tax rate: 40%

Assume that operating income is normally distributed, what is the probability that GAMESHOP will have negative EPS next year?

(HINT: This problem requires you to consult the normal distribution table)

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