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MassNet Corporation has 10.38 million shares outstanding and debt with interest payments of $1.12 million. What...

MassNet Corporation has 10.38 million shares outstanding and debt with interest payments of $1.12 million. What earnings before interest and tax (EBIT) must the firm have if it were to provide $2 per share to the shareholders? Assume perfect markets. Answer:$ million Place your answer in milions of dollars with two decimal places.

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Answer #1

EPS=Earning After Tax/No of Share outstanding

$2 per share =Earning After Tax/10.38 million shares outstanding

Earning After Tax=10.38*2=$20.76 million

EBIT==$20.76 million + 1.12 million=$21.88 million

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