A fiRm Has 30,000 Shares of Stock Outstanding, $450,000 in Debt

question 343

Multiple Choice

A firm has 30,000 shares of stock outstanding, $450,000 in debt at a 9% rate, an EBIT of $112,000, and a tax rate of 0%. What is the EPS?

• A) $2.38
• B) $2.51
• C) $2.87
• D) $3.36
• E) $3.73

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Definitions:

Financial Services

A broad range of services offered by the finance industry, including banking, insurance, investment, and estate planning, among others.

Guaranteed Annual Wage

A financial agreement where an employer ensures an employee receives a minimum income for a specified number of hours worked or not worked over a year.

Paid Time-off Benefit

A company policy that allows employees to receive wages while they are not working during holidays, vacations, or other personal reasons.

Holidays and Vacations

Scheduled periods of rest and leisure that employees are entitled to, providing a break from work responsibilities.