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Summer Tan, Inc., is an all-equity firm with a total market value of $718,000 and 46,700 shares of stock outstanding Management believes the earnings before
Summer Tan, Inc., is an all-equity firm with a total market value of $718,000 and 46,700 shares of stock outstanding Management believes the earnings before interest and taxes (EBIT) will be $94,500 if the economy is normal. If there is a recession, EBIT will be 25 percent lower, and if there is a boom, EBIT will be 35 percent higher. The tax rate is 40 percent. What is the EPS in a boom? Multiple Choice O $1.21 O $1.52 O $1.64 O $.91 $.79 O O
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