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Zambezi Corp. expects EBIT to vary with the state of the economy as follows: 560 State of economy EBIT in $ million) Boom Base 125

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Zambezi Corp. expects EBIT to vary with the state of the economy as follows: 560 State of economy EBIT in $ million) Boom Base 125 Bust -200 Zambezi doesn't have any long-term debt and has 95 million shares outstanding, currently trading at $8.63. Because of political connections, it doesn't pay any taxes. Part 1 TB Attempt 1/10 for 10 pts. What are the expected earnings per share (EPS) during a boom? 1+ decimals Submit Part 2 IB Attempt 1/10 for 10 pts. What are the expected earnings per share (EPS) during a bust? 2+ decimals Submit Part 3 Attempt 1/10 for 10 pts. Zambezi now issues bonds worth $38 million to buy back some shares. How many shares are outstanding after the restructuring (in million)? No decimals Submit Part 4 8 - Attempt 1/10 for 10 pts. The interest rate on the debt is 4%. What are the expected earnings per share (EPS) during a boom after the restructuring? 1+ decimals Submit Part 5 Te Attempt 1/10 for 10 pts. What are the expected earnings per share (EPS) during a bust after the restructuring? 2+ decimals Submit

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