Calculate earnings per share for the levels of ebit

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Problem 1: GPA Calculations Southland Industries has outstanding $ 60,000 of bonds that pay 16% annual interest, 1,500 preferred shares that pay an annual dividend of $ 5 each, and 4,000 common shares. Assuming the business has a tax rate of 40%, calculate earnings per share (EPS) for the following levels of EBIT:

a) $ 24,600
b) $ 30,600
c) $ 35,000

Reference no: EM132950621

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