Question

Your firm is financed with $1,000 of debt with an interest rate of 6%, 50 shares...

Your firm is financed with $1,000 of debt with an interest rate of 6%, 50 shares of preferred stock with a promised dividend of $1 per share, and 1,500 shares of common stock. Your tax rate is 25%. Use the EPS equation to calculate your EPS if EBIT is $2,000.

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