A firm has a current capital structure consisting of 500000


A firm has a current capital structure consisting of $500,000 of 14 percent annual interest debt and 80,000 shares of common stock. The firm's tax rate is 40 percent on ordinary income. If the EBIT is expected to be $200,000, two EBIT-EPS coordinates for the firm's existing capital structure are ________. A. ($36,000, $0) and ($200,000, $3.04) B. ($48,000, $0) and ($200,000, $1.82) C. ($70,000, $0) and ($200,000, $0.98) D. ($152,000, $3.50) and ($150,000, $1.82)

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Financial Management: A firm has a current capital structure consisting of 500000
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