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Zizou Acquatics wants to compare two possible capital structures. In the first, the company would have 190,000 shares of stock outstanding. In the second,
Zizou Acquatics wants to compare two possible capital structures. In the first, the company would have 190,000 shares of stock outstanding. In the second, the company would have 140,000 shares of stock outstanding and $2 million in debt outstanding. The interest rate on the debt is 8 percent annually, and there are no taxes. a. If EBIT is $625.000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Unlevered Levered EPS
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Managerial Accounting
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