A Firm Has EBIT of $29 Million,interest Expense of $4

question 26

Multiple Choice

A firm has EBIT of $29 million,interest expense of $4.5 million,and pays taxes of $8 million.If the firm has 15 million shares outstanding,what is the firm's EPS?

• A)$1.93
• B)$1.10
• C)$1.40
• D)$1.63
• E)$0.91

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses to show net income or loss.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Expenses

Outflows of resources or incurrences of liabilities that result in a decrease in the equity of a company, other than distributions to owners.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.