Question regarding firm earnings per share
Gray has a current capital structure consisting of $400,000 of 12% annual interest debt and 50,000 shares of common stock. The firm's tax rate is 40% on ordinary income. If the EBIT is expected to be $200,000, what is the firm's earnings per share?
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The firm's tax rate is 40% on ordinary income. If the EBIT is expected to be $200,000, what is the firm's earnings per share?
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