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The balance sheet of the Regulator Agency shows a capital structure as follows: Current liabilities $ 0 Bonds (6% interest) 100,000 Common stock 900,000 Total
The balance sheet of the Regulator Agency shows a capital structure as follows: Current liabilities $ 0 Bonds (6% interest) 100,000 Common stock 900,000 Total claims $1,000,000 Its rate of return before interest and taxes on its assets of $1 million is 20 percent. The value of each share (whether market or book value) is $30. The firm is in the 50 percent tax bracket. Calculate its earnings per share
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