EBIT Interest EBT Taxes EAT # Shares EPS Common Stock Financing Pessimistic Realistic Optimistic $2,000,000 ######## $3,000,000 0 0 0 2,000,000 260,000 1,740,000 870,000 2,610,000 1,163,100 ########_1,163,100 $1.50 ######## 3,000,000 130,000 390,000 $0.75 $2.24 Debt Financing Pessimistic Realistic Optimistic $2,000,000 $1,000,000 $3,000,000 6,000,000 6,000,000 6,000,000 4,000,000 5,000,000 3,000,000 520,000 650,000 390,000 3,480,000 4,350,000 2,610,000 1,148,000 1,148,000 1,148,000 ($3.03) ($3.79) ($2.27)

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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recommendations and analysis for the EPS/EBIT data.

EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
Common Stock Financing
Pessimistic Realistic Optimistic
$2,000,000 ######## $3,000,000
0
0
0
2,000,000
########
3,000,000
260,000
130,000 390,000
1,740,000 870,000 2,610,000
1,163,100 ########_1,163,100
$1.50
$0.75 $2.24
Debt Financing
Pessimistic Realistic Optimistic
$2,000,000 $1,000,000 $3,000,000
6,000,000 6,000,000 6,000,000
4,000,000 5,000,000 3,000,000
520,000 650,000 390,000
3,480,000 4,350,000 2,610,000
1,148,000 1,148,000 1,148,000
($3.03) ($3.79) ($2.27)
Transcribed Image Text:EBIT Interest EBT Taxes EAT # Shares EPS Common Stock Financing Pessimistic Realistic Optimistic $2,000,000 ######## $3,000,000 0 0 0 2,000,000 ######## 3,000,000 260,000 130,000 390,000 1,740,000 870,000 2,610,000 1,163,100 ########_1,163,100 $1.50 $0.75 $2.24 Debt Financing Pessimistic Realistic Optimistic $2,000,000 $1,000,000 $3,000,000 6,000,000 6,000,000 6,000,000 4,000,000 5,000,000 3,000,000 520,000 650,000 390,000 3,480,000 4,350,000 2,610,000 1,148,000 1,148,000 1,148,000 ($3.03) ($3.79) ($2.27)
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