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Your company has a 30% tax rate and has $769 million in assets, currently financed entirely with equity. Equity is worth $5190 per share and

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Your company has a 30% tax rate and has $769 million in assets, currently financed entirely with equity. Equity is worth $5190 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 Expect EBIT in Suate Recession Average Boom 05 70 25 $119 million $194 million $254 million The firm is considering witching to a 25-percent debt capital structure, and has determined that they would have to pay a 8 percent yield on perpetual debt in either event. What will be the standard deviation in EPS if they switch to the proposed capital structure? 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) Multiple Choice 2.05 573 E 1721 TAN 80 P Type o du do Dll Price More Po Pop $ A # 3 & 7 4 5 6 9 8 0 2 O P W E Y U R O S D F G H L K J Type here to search O PA d Prison Home End Pgup FB 18 FT @ $ 4 % 5 & 7 6 8 9 0 2 3 R Y U T I P W O D F S G . J K L V N B M N C Alt 110 Alt

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