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Summer Tan, Incorporated, is an all-equity firm with a total market value of $575,000 and 38,900 shares of stock outstanding. Management believes the earnings before
Summer Tan, Incorporated, is an all-equity firm with a total market value of $575,000 and 38,900 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $82,800 if the economy is normal. If there is a recession, EBIT will be 10 percent lower, and if there is a boom, EBIT will be 20 percent higher. The tax rate is 21 percent. What is the EPS in a boom
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