Determine earnings per share
Problem: A firm has 1.5 million shares outstanding. EBIT is $5 million and interest paid is $2 million. If the corporate tax rate is 35%, what is earnings per share?
a. $0.50
b. $0.95
c. $1.30
d. $1.70
e. $2.50
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A firm has 1.5 million shares outstanding. EBIT is $5 million and interest paid is $2 million. If the corporate tax rate is 35%, what is earnings per share?
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