EPS Calculation. The balance sheet of the Delta Corporation shows a capital structure as follows:
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Current liabilities
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$ 0
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Bonds (6% interest)
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100,000
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Common stock
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900,000
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Total claims
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$1,000,000
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Its rate of return before interest and taxes on its assets of $1 million is 20 percent. The value of each share (whether market or book value) is $30. The firm is in the 50 percent tax bracket. Calculate its earnings per share.