Yang Centers has a book value of $8.75, a 10% cost of debt, operating income of $500,000, and a 30% tax rate. If Yang Centers finances 75% of its $4 million of total capital needs with debt, what is its earnings per share?
A)$0.88
B)$1.22
C)$1.75
D)$2.21

Question

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The Answer of Yang Centers has a book value of $8.75, a 10% cost of debt, operating income of $500,000, and a 30% tax rate. If Yang Centers finances 75% of its $4 million of total capital needs with debt, what is its earnings per share?
A)$0.88
B)$1.22
C)$1.75
D)$2.21

Yang Centers Has a Book Value of $8