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:

Classifications of Crimes

The categorization of criminal offenses based on their nature, severity, and the laws they violate.

Diversion Program

In some jurisdictions, an alternative to prosecution that is offered to certain felony suspects to deter them from future unlawful acts.

Felony Suspects

Individuals suspected of committing a serious crime, classified as a felony, which is typically punishable by imprisonment or death.

Procedural Steps

A series of actions or operations conducted in a proper sequence to achieve a legal or regulatory outcome.