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solina solina
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7 years ago
Farar, Inc. projects operating income of $4 million next year. The firm's income tax rate is 40%. Farar presently has 750,000 shares of common stock, no preferred stock, and no debt. The firm is considering the issuance of $6 million of 10% bonds to finance a new product that is not expected to generate an increase in income for two years. If Farar issues the bonds this year, what will projected EPS be next year?
A) $1.53
B) $1.98
C) $2.72
D) $4.53
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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Heavy Heart Thank you bio-forums! Heavy Heart
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David_hessDavid_hess
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solina Author
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#2
7 years ago
Simple and easy, thank u
Heavy Heart Thank you bio-forums! Heavy Heart
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