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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:
Hazards
Potential sources of harm or adverse health effects on individuals or populations, often categorized as physical, chemical, biological, ergonomic, or psychosocial.
Worker's Compensation System
A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.
Third-Party Beneficiaries
Individuals or entities that benefit from a contract despite not being a party to the contract themselves.
De Facto Employees
Individuals who work in conditions similar to employees but without formal recognition or the legal rights of employees, often in a jurisdictional gray area.
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