Learn and Earn Company is financed entirely by common stock that is priced to offer a 20% expected rate of return. The stock price is $60/share and the expected earnings per share (EPS) is $12. If the company repurchases 50% of the stock using borrowed funds at an 8% interest rate, what is the expected earnings per share value after refinancing?

Outstanding stock consists of 8,300 shares of cumulative 7% preferred stock with a $10 par value and 4,300 shares of common stock with a $1 par value. during the first three years of operation, the corporation declared and paid the following total cash dividends. year dividend declared 2016 $ 0 2017 $ 7,300 2018 $ 45,000 the amount of dividends paid to preferred and common shareholders in 2018 is: