Consider a firm with an EBIT of $569,000. The firm finances its assets with $1,190,000 debt (costing 6.3 percent) and 219,000 shares of stock selling at $18.00 per share. The firm is considering increasing its debt by $900,000, using the proceeds to buy back 94,000 shares of stock. The firm is in the 40 percent tax bracket. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $569,000. Calculate the change in the firm’s EPS from this change in capital structure.

Match the terms with the appropriate definition. 1. work done for pay job 2. series of related jobs based on knowledge, training, tasks performed, interests, and experience career 3. buying or selling products and services using the internet mediation 4. wage amount after deductions are withheld net wage 5. a way a person chooses to live his or her life e-commerce 6. the people who are both able and willing to work technology 7. unequal treatment of others based on a bias concerning a person’s characteristics such as race, religion, gender, or age discrimination 8. the act of sharing information lifestyle 9. the use of a third party to make suggestions workforce 10. knowledge and tools used to perform tasks communication