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:

Revisiting Decisions

The process of reviewing and potentially altering previous choices based on new information or outcomes.

Management Approach

The strategy or methodology used by an organization's leadership to guide operations, decision-making, and policy implementation.

Project Phases

Different stages in the lifecycle of a project, typically including initiation, planning, execution, monitoring/control, and closure.

Project Management Experience

The accumulation of knowledge, skills, and techniques acquired through managing projects.