QUESTION 7 A firm has EBIT of $4.5 million, interest expense of $400,000, and pays taxes of $1.2 million. If the firm has 2 million shares outstanding, what is the firm's EPS? a. $1.45 b. $2.25 c. $1.65 d. $1.55 QUESTION 8 A firm has EBIT = 4,200; interest expense = 600; operating expenses = 12,500; principal of debt owed = 10,000; shareholders' expected return of 8%. What is its interest coverage ratio (TIE ratio), and what does the ratio measure? a. 7.0; ability to pay interest on debt with operating income b. 1.6; ability to cover or pay the operating expenses c. 7.0; ability to cover or meet shareholders' expectation d. 0.4; ability to pay the principal amount of its debt QUESTION 9 You have deposited $1500 in an account today. The account pays a yearly interest rate of 8% compounded annually. How much will you have at the end of the second year? a. $1740.00 b. $1749.60 c. $1892.37 d. $3256.54