Question: ment Notes enu us Item tem unication Message Messages llaneous ndixi of Measure Mass Amborst leh Panahi Wer....pdf Q A Pi ption Boston Lumber is

ment Notes enu us Item tem unication Message Messages llaneous ndixi of Measure Mass Amborst leh Panahi Wer....pdf Q A Pi ption Boston Lumber is unlevered with 205 shares outstanding and earnings before interest and taxes, or EBIT, of 625. Corporate earnings are taxed at a rate of 37%. Suppose that Boston Lumber makes a decision to partition its assets into debt and equity by using the newly raised debt capital to buy back a portion of the stock. The firm issues $2250 of debt at a cost of 7.55%. The partition does not change EBIT but reduces the number of shares outstanding to 130. Which of the following is Boston Lumber's EPS after the partition? O$1.40 $4.81 $1.92 O $2.21 N I've finished the exam, A @ 2 3.481 W S 2 Laleh-Panahi-W....doc X H command #3 E D MAY 24 $ 4 C ^ R F Laleh-Panahi-W....doc % 5 V stv T G 6 SUBMIT ANSWER B 9 MacBook Pro Y # Laleh Panahi Off....pdf H & 7 N U A J * 00 8 ON M 9 K O -0 O L command P Show All I option 21 ? VALUE Offers end May 31 } 1

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