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Business, 23.07.2019 01:30 cupcake3103670

Northern wood products is an all-equity firm with 25,100 shares of stock outstanding and a total market value of $376,000. based on its current capital structure, the firm is expected to have earnings before interest and taxes of $38,000 if the economy is normal, $23,600 if the economy is in a recession, and $52,400 if the economy booms. ignore taxes. management is considering issuing $95,200 of debt with an interest rate of 6 percent. if the firm issues the debt, the proceeds will be used to repurchase stock. what will the earnings per share be if the debt is issued and the economy is in a recession?

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