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Firm A has $1 million in operating income and pays $250,000 in interest. In addition, firm A has $7.50 EPS. Firm B has an operating income of $2.0 million. Assume that both firms have the same amount of debt and the same number of shares (ignore taxes). We can conclude that firm's B has higher EPS than firm A by the amount of: $10.00 $12.50 $15.00 $20.00
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Firm A has $1 million in operating income and pays $250,000 in interest. In addition, firm A has $7....
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