Use the Following Information to Answer the Question(s)below

question 15

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors is currently an all-equity financed firm.It expects to generate EBIT of $20 million over the next year.Currently Nielson has 8 million shares outstanding and its stock is trading at $20.00 per share.Nielson is considering changing its capital structure by borrowing $50 million at an interest rate of 8% and using the proceeds to repurchase shares.Assume perfect capital markets.
-Nielson's EPS if they choose not to change their capital structure is closest to:

• A)$2.00.
• B)$2.30.
• C)$2.50.
• D)$2.90.

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Definitions:

Socially Attractive

Describes the quality or characteristic of an individual or entity that draws others towards them due to their appealing social attributes.

Hiring Managers

Individuals within organizations responsible for recruiting, interviewing, and selecting new employees.

Agentic Characteristics

Traits associated with assertiveness, control, and confidence, often linked with taking initiative and leading in various situations.

Assertiveness

The quality of being self-assured and confident without being aggressive, in the context of communicating one's views or needs.