A firm’s financial statements reflect the following:
|
Net income |
$1,700,000 |
|
EBIT |
$2,900,000 |
|
Effective tax rate |
35% |
|
Interest payments |
$285,000 |
|
Common equity |
$3,100,000 |
|
Total assets |
$6,600,000 |
|
Preferred dividends paid |
$1,100,000 |
|
Weighted avg. shares outstanding |
523,000 |
Based on this information, what is the firm’s basic EPS?
A. $1.15.
B. $2.75.
C. $3.25.
|
