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

---

Definitions:

Impulsive

Acting without forethought or consideration of the consequences, typically driven by immediate desires or emotions.

Illogical

Lacking sense or clear, sound reasoning.

Emotional

Pertaining to feelings or affective states, often influencing behavior, thought processes, and physical states.

Reality Principle

A concept in psychoanalytic theory that represents the ability of the mind to assess the external world and act upon it accordingly, often seen as a counter to the pleasure principle.