Name Student Number In Class Exercise Wednesday, June 10, 2020 6-10-20A The CFO of Metal Recycling Inc. has come up with the following projected figures for next year: Sales 275,000 Costs 70% of sales Depreciation 30,000 Tax rate 21% Current Shares outstanding 11,000 Metal Recycling Inc has no debt currently, but the board is considering a loan of $300,000 at 11% interest, which they will use to repurchase shares of their own stock at $100 per share. The CFO thinks his projections of sales may be off by + or - 10%. Depreciation will stay the same. What will their EPS be under the current structure and under the proposed structure for each scenario? Is the restructuring a good idea? Current Structure: Worst Case Base Case Best Case Proposed Structure: Worst Case Base Case Best Case Should they do the restructuring? Yes or no