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Business, 22.08.2019 00:30 jordan495413

Franklin corporation is comparing two different capital structures, an all-equity plan (plan i) and a levered plan (plan ii). under plan i, the company would have 195,000 shares of stock outstanding. under plan ii, there would be 145,000 shares of stock outstanding and $2.1 million in debt outstanding. the interest rate on the debt is 8 percent and there are no taxes. a. if ebit is $550,000, what is the eps for each plan?

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