Reference no: EM13877709
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
a. $2.54
b. $22.54
c. $1.69
d. $16.95
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