Hazelton Bakers is an all-equity firm with a total market value of$650,000.

| April 14, 2018

Hazelton Bakers is an all-equity firm with a total market value of$650,000. The firm has 130,000 shares of stock outstanding. Management is considering issuing $250,000 of debt at an interest rate of 8 percent and using the proceeds to repurchase shares. The projected earnings before interest and taxes are $60,000. What are the anticipated earnings per share if the debt is issued?Ignore taxes.

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now