You plan to invest in one of two home delivery pizza companies,Bong and Bong.

They are identical except for their use of debt (wd) and the interest rates on their debt

Both companies have $3,000,000 in capital. Both have an expected EBIT of $500,000 and a Tax Rate of 35$

Calculate the EPS of each company.

EPS=NI/Shares

	BING	BONG
wd	70%	20%
Shares	90,000	240,000
Int. rate	12%	10%

BING's EPS	$1.27 $0.97 $1.87 $1.19 $1.79
BONG's EPS	$1.27 $0.97 $1.87 $1.19 $1.79