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InFury Or Products Co. is considering restructuring to a leveraged capital structure. Currently, the firm expects to earn EBIT of $376,514 on an all equity
InFury Or Products Co. is considering restructuring to a leveraged capital structure. Currently, the firm expects to earn EBIT of $376,514 on an all equity structure with 520,000 shares outstanding. The proposed structure will have the same EBIT, total debt of $2,065,000, and only 230,000 shares outstanding. If the interest rate on debt is 7.16%, how much will the leveraged structure increase Earnings per Share (EPS)? Ignore taxes for this problem. O $ $1.01 $0.55 $0.03 $0.27 $0.84
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