A company has 100000 in assets 1000 shares outstanding and


A company has $100,000 in assets, 1000 shares outstanding and no debt. If EBIT is $20,000, the interest rate on debt is 10% and its tax rate is 40%, what is its EPS? If the firm in question 35 decided to refinance with 50% debt and 50% equity, what would its EPS be?

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Accounting Basics: A company has 100000 in assets 1000 shares outstanding and
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