Here we consider two companies, Phil Co and Billy Co Both of these companies are exactly alike except Phil Co has outstanding debt of $1,664 and 406 shares of stock outstanding while Billy Co is all equity financed and has 700 shares of stock outstanding The outstanding debt is a perpetuity with annual coupons at 7 3 EBIT is $2,567 Assume a tax rate of 30 What is Billy Co 's EPS Enter your answer to two decimal places

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Here we consider two companies, Phil Co  and Billy Co  Both of these companies are exactly alike except Phil Co  has outstanding debt of $1,664 and 406 shares of stock outstanding while Billy Co is all equity financed and has 700 shares of stock outstanding  The outstanding debt is a perpetuity with annual coupons at 7 3   EBIT is $2,567  Assume a tax rate of 30   What is Billy Co 's EPS   Enter your answer to two decimal places

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Question

Here we consider two companies, Phil Co. and Billy Co. Both of these companies are exactly alike except Phil Co. has outstanding debt of $1,664

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