There are no taxes. EBIT is expected to be $2.5 million, but could be as high as $3.5 million if an economic expansion occurs, or as low as $2 million if a recession occurs. All values are market values.
What is EPS under the current capital structure if there is a recession?
A) $3.33
B) $4.17
C) $5.00
D) $6.25
Correct Answer:
Verified
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