Assuming the time is now Jan 01, 2001. You have the following financial information on Boston Electronics. The estimated cost of capital is 10%.

Suppose the company was having 500 million outstanding shares by Jan 01, 2001. What would be the Earning Per Shares (EPS) of 2000?

A. $0.1

B. $0.01

C. $1

D. $10

E. Other:

Boston Electronics Projected income statements ($ million) Year 2000 2001 2002 2003 2004 587.1 358.1 64.6 88.1 610.2 378.3 67.1 91.5 Sales Cost of goods sold Selling and admin. Depreciation EBIT Taxes Interest Net income 650.0 409.5 71.5 97.5 71.5 24.3 0 689.0 434.1 75.8 103.4 75.8 25.8 0 730.3 460.1 80.3 109.6 76.3 25.9 0 50.4 73.2 24.9 0 80.3 27.3 0 48.3 47.2 50.0 53.0 Projected balance sheets ($ million) Assets Accts receivable Inventory Property, plant, equip. Total assets 58.7 17.9 411.0 487.6 61.0 18.9 427.1 507.1 65.0 20.5 455.0 540.5 68.9 21.7 482.3 73.0 23.0 511.2 607.3 572.9 Liabs and equity Accts payable Equity Total liabs and equity 48.9 438.7 50.9 456.2 54.2 486.3 57.4 515.5 572.9 60.9 546.4 487.6 507.1 540.5 607.3 Boston Electronics Projected income statements ($ million) Year 2000 2001 2002 2003 2004 587.1 358.1 64.6 88.1 610.2 378.3 67.1 91.5 Sales Cost of goods sold Selling and admin. Depreciation EBIT Taxes Interest Net income 650.0 409.5 71.5 97.5 71.5 24.3 0 689.0 434.1 75.8 103.4 75.8 25.8 0 730.3 460.1 80.3 109.6 76.3 25.9 0 50.4 73.2 24.9 0 80.3 27.3 0 48.3 47.2 50.0 53.0 Projected balance sheets ($ million) Assets Accts receivable Inventory Property, plant, equip. Total assets 58.7 17.9 411.0 487.6 61.0 18.9 427.1 507.1 65.0 20.5 455.0 540.5 68.9 21.7 482.3 73.0 23.0 511.2 607.3 572.9 Liabs and equity Accts payable Equity Total liabs and equity 48.9 438.7 50.9 456.2 54.2 486.3 57.4 515.5 572.9 60.9 546.4 487.6 507.1 540.5 607.3