The Fitness Studio, Incorporated's income statement lists the following income and expenses: EBITDA = $949,000, EBIT = $780,000,interest expense = $126,000, and taxes = $228,900. The firm has no preferred stock outstanding and 100,000 shares of commonstock outstanding.Calculate the earnings per share.Note: Round your answer to 2 decimal places.Earnings per share Consider a firm with an EBIT of $859,000. The firm finances its assets with $2,590,000 debt (costing 8.4 percent and is all taxdeductible) and 490,000 shares of stock selling at $6.00 per share. To reduce the firm's risk associated with this financial leverage, thefirm is considering reducing its debt by $1,000,000 by selling an additional 290,000 shares of stock. The firm's tax rate is 21 percent.The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $859,000.Calculate the change in the firm's EPS from this change in capital structure.Note: Do not round intermediate calculations and round your final answers to 2 decimal places.EPS beforeEPS afterDifference

Name: The Fitness Studio, Incorporated's income statement lists the followi
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Description: The Fitness Studio, Incorporated's income statement lists the following income and expenses: EBITDA = $949,000, EBIT = $780,000,interest expense = $126,000, and taxes = $228,900. The firm has no preferred stock outstanding and 100,000 shares of comm

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Calculate the earnings per share. Note: Round your answer to 2 decimal places. Earnings per share

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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