Your company has a 21% tax rate and has $760 million in assets, currently financed entirely with equity. Equity is worth $51.00 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below: State Probability of state Expected EBIT in state Recession 0.20 Average 0.55 $ 110 million $ 185 million Boom 0.25 $ 245 million The firm is considering switching to a 15 percent debt capital structure, and has determined that they would have to pay a 11 percent yield on perpetual debt in either event. What will be the standard deviation in EPS if they switch to the proposed capital structure? Note: Round your intermediate calculations and final answer to 2 decimal places except calculation of number of shares which should be rounded to nearest whole number.

Your company has a 21 . tox rate and has $760million in assets, currently financed entirely with equity. Equity is worth $51.00 pel share. and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the econonty occurs this year, with the possible values of EBIT and their associated probabilities as shown belowr The firm is considering swiching to a 15 percent debt capital structure, and has determined that they would have to pay a 11 percentyield on perpetual debt in either event. Whot will be the standard deviation in EPS if they switch to the proposed capital structure? Note: Round your intermediate calculations and final answer to 2 decimal places except calculation of number of shares which should be rounded to nearest whole number