Question
Ornaments, Inc., is an all-equity firm with a total market value of $696,000 and 36,100 shares of stock outstanding. Management believes the earnings before interest
Ornaments, Inc., is an all-equity firm with a total market value of $696,000 and 36,100 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $100,200 if the economy is normal. If there is a recession, EBIT will be 15 percent lower, and if there is a boom, EBIT will be 25 percent higher. The tax rate is 34 percent. What is the EPS in a recession?
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Carbon Markets Or Climate Finance?
Authors: Axel Michaelowa
1st Edition
0415743435, 978-0415743433
