Calculate bear earnings per share for next year

Reference no: EM13297003

As the Financial vice president for Bear Enterprises, you have the following information: Expected net income after tax next year before new financing : $60,000,000 Sinking Fund payments due next year on existing debt: $20,000,000 Interest due next year on existing debt $18,000,000 Conpany Tax rate 25% Common Stock Price, per share $17 Common Shares outstanding: 22,000,000 Calculate Bear's Earnings Per Share for next year assuming the firm raises $60 Million of new debt at an interest rate of 9 percent Answer a. $2.54 b. $22.54 c. $1.69 d. $16.95

Reference no: EM13297003

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