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SCENARIO #4: 10 points Complete the EPS/EBIT Analysis for the XYZ Company by determining the EPS based on the a. 100% Debt financing b. 100%

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SCENARIO #4: 10 points Complete the EPS/EBIT Analysis for the XYZ Company by determining the EPS based on the a. 100% Debt financing b. 100% Stock financing c. 50/50 Debu/Stock Combination Input Data Amount of capital needed EBIT Interest Rate Tax Rate Stock Price #Shares outstanding The Number S75 million 15 million 6 percent 35 percent S50 250 million 100% Debt 100% Stock 50/50 Debt/Stk Combo SEBIT SINTEREST SEBT STAXES SEAT SHARES SEPS QUESTION-scenario #4: 1. Which financing is BEST for the XYZ Company? Explain

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