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Zohar, Inc., is an all-equity firm with a total market value of $542,000 and 37,100 shares of stock outstanding. Management believes the earnings before interest
Zohar, Inc., is an all-equity firm with a total market value of $542,000 and 37,100 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $80,100 if the economy is normal. If there is a recession, EBIT will be 20 percent lower, and if there is a boom, EBIT will be 30 percent higher. The tax rate is 35 percent. What is the EPS in a boom? Multiple Choice $1.82 O $1.68 O $1.12 $1.40 $.98
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