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Great Lake Corp. currently has 20,000 shares of common stock outstanding. The company plans to build a new distribution center in Northern Ohio and needs
Great Lake Corp. currently has 20,000 shares of common stock outstanding. The company plans to build a new distribution center in Northern Ohio and needs to raise another $200,000. The company decides to borrow $200,000 from a local bank with 8% interest rate. If this option can help to boost the EBIT to $1,000,000, and tax rate of 50%, determine the earnings per share for this option.
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