Question: Here we consider two companies, Phil Co. and Billy Co. Both of these companies are exactly alike except Phil Co. has outstanding debt of $1,029

Here we consider two companies, Phil Co. and Billy Co. Both

Here we consider two companies, Phil Co. and Billy Co. Both of these companies are exactly alike except Phil Co. has outstanding debt of $1,029 and 401 shares of stock outstanding while Billy Co is all equity financed and has 694 shares of stock outstanding. The outstanding debt is a perpetuity with annual coupons at 8%. EBIT is $2,523. Assume a tax rate of 30%. What is Phil Co.'s EPS? [Enter your answer to two decimal places)

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