Need to really see how the formula is calculated on this word problem.
Compute earnings per share if earnings before interest and taxes are $10,000, $15,000 and $50,000 (assume a 30%tax rate).
Explain the relationship between earnings per share and the level of EBIT.
If the cost of debt went up to 12% and all other factors remained equal, what would be the break-even level for EBIT?
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