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Return to 18 Daddi Mac, Inc, doesn't face any taxes and has $303.20 million in assets, currently financed entirely with equity Equity is worth $32

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Return to 18 Daddi Mac, Inc, doesn't face any taxes and has $303.20 million in assets, currently financed entirely with equity Equity is worth $32 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below: 5 Dont Probability of state Expected OT I state Recension Aver Boom 0.20 0.55 0.25 35,106,000 $10,612,000 $17,661,400 The firm is considering switching to a 20 percent-debt capital structure, and has determined that it would have to pay an 10 percent yield on perpetual debt regardless of whether it changes the capital structure, What will be the standard deviation in EPS if the firm switches to the proposed capital structure? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Answer is complete but not entirely correct. Standard deviation in EPS $ 021

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