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(continuation of problem #3) Suppose that Disney decides to borrow money to make the investment above. They expect that interest expense on the new loan would be $5 million each year for 4 years. What would be the effect on EPS each year, if Disney has 1 million shares outstanding? 4.

(continuation of problem #3) Suppose that Disney decides to borrow money to make the investment above. They expect that interest expense on the new loan would be $5 million each year for 4 years. What would be the effect on EPS each year, if Disney has 1 million shares outstanding? 4.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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This is a continuation of the last problem I sent on Disney in number 3. I need help on problem 4. And how do I represent it with formulas in excel.

(continuation of problem #3) Suppose that Disney decides to borrow money to make the investment above. They expect that interest expense on the new loan would be $5 million each year for 4 years. What would be the effect on EPS each year, if Disney has 1 million shares outstanding? 4.
Transcribed Image Text:(continuation of problem #3) Suppose that Disney decides to borrow money to make the investment above. They expect that interest expense on the new loan would be $5 million each year for 4 years. What would be the effect on EPS each year, if Disney has 1 million shares outstanding? 4.
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