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Question 8 Not yet wered Marted out of 3.33 A firm issues 100,000 shares of common stock with a total market value of $5
Posted: Thu May 19, 2022 6:27 am
by answerhappygod
- Question 8 Not Yet Wered Marted Out Of 3 33 A Firm Issues 100 000 Shares Of Common Stock With A Total Market Value Of 5 1 (19.03 KiB) Viewed 24 times
Question 8 Not yet wered Marted out of 3.33 A firm issues 100,000 shares of common stock with a total market value of $5,000,000 and an equal amount of debt. The firm is expected to generate $1.5 million in operating income and pay $250.000 in interest. If the firm does not pay tax, what will happen to EPS if the firm repurchases 2.500.000 of shares and substitutes an equal amount of additional debt? Flag Beton Select one: O a EPS increases to $15.00 O b. EPS increases to $22.50 OG EPS decreases to $11.67 O d. EPS decreases to $10.00