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Earnings Per Share

What is the earnings per share of stock in a company that finances 75% of the company's $4,000,000 total capital needs with debt and has an operating income of $500,000, 10% cost of debt, 30% tax rate, and book value of $8.75.

a) $1.75 ,
b) $2.00 ,
c) 2.21 ,
d) .88 ,
e) 1.22

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What is the earnings per share of stock in a company that finances 75% of the company's $4,000,000 total capital needs with debt and has an operating income of $500,000, 10% cost of debt, 30% tax rate, and book value of ...

Solution Summary

Calculates Earnings Per Share.

$2.19