Calculate EPS If a Company,with 1 Million Shares with a Market

question 54

Multiple Choice

Calculate EPS if a company,with 1 million shares with a market price of $4 each and zero debt,decides to buy back 25 per cent of its outstanding shares by borrowing at 10% p.a.Assume current earnings are $0.4 million and taxes do not apply.

• A)$4
• B)53.3c
• C)40c
• D)66.6c

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