Business
Business, 01.11.2019 07:31, garretthyatt123

Jr computers, a firm that manufactures and sells personal computers is an all-equity firm with 100,000 shares outstanding, $10 million in earnings after taxes and a market value of $ 150 million. assume that this firm borrows $60 million at an interest rate of 8% and buys back 40,000 shares, using the funds. if the firm's tax rate is 50%, estimate the effect on earnings per share of the action.

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