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Ornaments, Inc., is an all-equity firm with a total market value of $586,000 and 25.100...

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Ornaments, Inc., is an all-equity firm with a total market value of $586,000 and 25.100 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $83,200 if the economy Is normal. If there is a recession, EBIT will be 15 percent lower, and if there is a boom, EBIT will be 25 percent higher. The tax rate is 40 percent. What is the EPS in a recession? Multiple Choice $2.29 $1.49 $169 $249 $1.99

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