Question
Intro Zambezi Corp. expects EBIT to vary with the state of the economy as follows: State of economy EBIT (in $ million) Boom 560 Base
Intro
Zambezi Corp. expects EBIT to vary with the state of the economy as follows:
| State of economy | EBIT (in $ million) |
| Boom | 560 |
| Base | 125 |
| Bust | -200 |
Zambezi doesn't have any long-term debt and has 81 million shares outstanding, currently trading at $8.42. Because of political connections, it doesn't pay any taxes.
Part 1
What are the expected earnings per share (EPS) during a boom?
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Financial And Managerial Accounting For MBAs
Authors: Peter D. Easton
6th Edition
9781618533593
