Compare earnings per share

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Reference no: EM1310283

Southland Industries has $60,000 at 16% (annual interest) bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5 per share, and 4,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compare Earnings per share (EPS) for the following levels of EBIT:

a) $24,600

b) $30,600

c) $35,000

Reference no: EM1310283

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