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Plan W has 100,000 shares selling for $10, EPS of $1.00 and $500,000 of debt. Plan M has 80,000 shares selling for $9, EPS of
Plan W has 100,000 shares selling for $10, EPS of $1.00 and $500,000 of debt. Plan M has 80,000 shares selling for $9, EPS of $1.10 and $900,000 of debt. Which plan should be chosen, and why?
M because the market value of the company is higher. | ||
W because there is less debt. | ||
W because the stock price is higher. | ||
M because EPS is higher. |
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