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Zizou Accuatics wants to compare two possible capital structures. In the first, the company would have 200.000 shares of stock outstanding. In the second, the
Zizou Accuatics wants to compare two possible capital structures. In the first, the company would have 200.000 shares of stock outstanding. In the second, the company would have 150.000 shares of stock outstanding and $3 million in debt outstanding. The interest rate on the debt is 8 percent annually, and there are no taxes. a. If EBIT is $675.000. what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS 3.38 Unlevered 5 Levered 2.90
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