What happens to an all-equity firms eps when 1 million of, Finance Basics

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What happens to an all-equity firms eps when 1 million of

What happens to an all-equity firm's EPS when $1 million of 20% debt is issued and proceeds used to repurchase two-thirds of the stock if operating income equals $1.5 million and EPS were $2 when the firm was all-equity-financed? Ignore taxes.

a. EPS increase to $2.60.
b. EPS increase to $3.00.
c. EPS increase to $4.80.
d. EPS increase to $5.20.

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Finance Basics: What happens to an all-equity firms eps when 1 million of

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Finance Basics: What happens to an all-equity firms eps when 1 million of

Reference No:- TGS0628988

Recent Questions Asked Finance Basics

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