Summer Tan, Incorporated, is an all-equity firm with a total market value of $619,000 and 41,300 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $86,400 if the economy is normal. If there is a recession, BIT will be 30 percent lower, and if there is a boom, BIT will be 40 percent higher. The tax rate is 25 percent. What is the EPS in a boom?

Summer Tan, Incorporated, is an all-equity firm with a total market value of $619,000 and 41,300 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $86,400 if the economy is normal. If there is a recession, EBIT will be 30 percent lower, and if there is a boom, EBIT will be 40 percent higher. The tax rate is 25 percent. What is the EPS in a boom? Multiple Choice $.75 $1.63 $2.20 $1.26 $.88