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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 change their capital structure is closest to:
Industrial Output
The total volume of products and services produced by an industry, often used as an indicator of industrial activity and economic health.
Internal Combustion
A process where fuel is burned within an engine, producing power through the expansion of gases.
Carburetor
A device in an internal combustion engine that mixes air with a fine spray of liquid fuel.
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