Southland industries has 60000 at 16 annual interest bonds

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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: EM13355660

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