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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 86 million shares outstanding, currently trading at $8.81. Because of political connections, it doesn't pay any taxes. 1 - Attempt 1/5 for 8 pts. Part 3 Zambezi now issues bonds worth $41 million to buy back some shares. How many shares are outstanding after the restructuring (in million)? 90.65 Try again Try again See solution (-9 pts.) IB Attempt 1/5 for 10 pts. Part 4 The interest rate on the debt is 4%. What are the expected earnings per share (EPS) during a boom after the restructuring? 1+ decimals Submit Part 5 IB Attempt 1/5 for 10 pts. What are the expected earnings per share (EPS) during a bust after the restructuring? 1+ decimals Submit
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