Your firm is financed with $1,000 of debt with an interest rate of 6%, 50 shares of preferred stock with a promised dividend of $1 per share, and 1,500 shares of common stock. Your tax rate is 25%. Use the EPS equation to calculate your EPS if EBIT is $-100.

Use the EPS equation to calculate your EPS, assuming that a negative value for EBT will result in no taxes being paid?

Use the EPS equation to calculate your EPS, assuming that a negative value for EBT will result in a tax savings?