Discussion: Blums Inc
Blums, Inc., expecs its operating income over the coming year to equal $1.5 million, with a standard deviation of $300,000. Its coefficient of variation is equal to 0.20. Blums must pay interest charges of $700,000 next year and preferred stock dividends of $240,000. Blums' marginal tax rate is 40 percent. What is the probability that Blums will have negative earnings per share next year?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.