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QUESTION 13 Firms Pinhani and Kolpa are identical except their use of debt and the interest rates they pay. Kolpa has more debt and thus

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QUESTION 13 Firms Pinhani and Kolpa are identical except their use of debt and the interest rates they pay. Kolpa has more debt and thus must pay a higher interest rate. Based on the data given below, calculate the Earnings Per Share for both companies. Applicable to both firms: Capital $7,000,000 EBIT $1,500,000 Tax Rate 30% Share Price $10 Firm Pinhani's Data. Weight of Debt 30% Interest Rate 10% Firm Kolpa's Data Weight of Debt 50% Interest Rate 12% EPS(P)= $1.52, EPS(K)= $4.26 EPS(P)= $2.82, EPS(K)= $2.16 EPS(P)= $3.38, EPS(K)= $1.75 EPS(P)= $1.84, EPS(K)= $2.16

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