Compute earnings per share for the levels

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Reference no: EM131023346

Southland industries has 60,000 0f 14.1% (annual interest) bonds outstanding, 1,800 shares of preferred stock paying annual dividend of $5 per share, and 7,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compute earnings per share (EPS) for the following levels of EBIT:

a.$24,900

b. $30,300

c. $35,000

Reference no: EM131023346

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