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Pepsi Co. is a levered firm with $2 million of debt financing at 10% interest rate. The company has 100,000 shares outstanding. If EBIT of

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Pepsi Co. is a levered firm with $2 million of debt financing at 10% interest rate. The company has 100,000 shares outstanding. If EBIT of the company this year is $700,000 and tax rate is 30%, what is the EPS of Pepsi Co? $7.00 per share $5.00 per share $3.50 per share $2.00 per share

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