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Business, 27.08.2021 19:30 janighad01

Learn and Earn Company is financed entirely by common stock that is priced to offer a 20% expected rate of return. The stock price is $60/share and the expected earnings per share (EPS) is $12. If the company repurchases 50% of the stock using borrowed funds at an 8% interest rate, what is the expected earnings per share value after refinancing?

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