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Use the data in the paragraph below and the information in the table below to answer the next three questions. Sinclair, Inc. is a levered

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Use the data in the paragraph below and the information in the table below to answer the next three questions. Sinclair, Inc. is a levered firm with assets valued at $10,000 and has debt issued at 10% interest. Sinclair pays tax att and boom. Note: EBIT earnings before interest and tax, $ Interest-dollar amount of interest owed on the debt, NIBT net income before tax, N. net income, EPS earnings per share) Assume that firms with negative NIBT pay no tax. he rate of 34%. The firm faces EBIT sc enario s of recession A portion of the inputs to the income statement are provided below, and a portion is not. Use the information above to fill in all the missing values. EBIT S INTEREST NIBT TAXES N EPS $900 BOOM RECESSION $200 _(S550)$1.32 23. If Sinclair's leverage factor is 4, what amount comes closest to the amount of debt issued? A. 2,500 B. 4,000 C. 5,000 D. 6,500 E. 7,500 24. What amount comes closest to Sinclair's NI is the BOOM scenario? A. $99 B. $90 C. $66 D. $60 E. $51 25. What amount comes closest to Sinclair's EPS in the RECESSION scenario? A. ($7.33) B. (S3.33) C. $O D. $3.33 E. $7.33

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