Assume for year ended December 31, 2022, earnings before interest and income tax (EBIT) is $500,000. The corporation has 5% bonds of face value 1,000,000 and $10 par common stock 100,000 shares outstanding. Income tax (IT) rate is 21% and no state level tax. Calculate EPS.

Answer rating: 100% (QA)

First we need to calculate the interest expense Interest expense ... View the full answer