What is the variability of eps

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Suppose that a company that has 25.000 outstanding shares will require a new financing of 500.000 TL from 50% common stock issuance and 50% bond issuance. All common stocks are sold at 10 TL per share (25.000 shares) and all bonds have a coupon rate of 8%. Expected EBIT is 100.000 TL. Income tax rate is 20%. What is the variability of EPS?

Reference no: EM132554763

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