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Summer Tan, Inc., is an all-equity firm with a total market value of $696,000 and 45,500 shares of stock outstanding, Management believes the earnings before
Summer Tan, Inc., is an all-equity firm with a total market value of $696,000 and 45,500 shares of stock outstanding, Management believes the earnings before interest and taxes (EBIT) will be $92,700 if the economy is normal. If there is a recession, EBIT will be 15 percent lower, and if there is a boom, EBIT will be 25 percent higher. The tax rate is 34 percent. What is the EPS in a boom? Multiple Choice O $1.14 O $1.68 $1.55 $1.34 $1.01
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