Martha White's Fabrics is currently an all equity firm that has 15,000 shares of stock outstanding at a market
Price of $12.50 a share. Company management has decided to issue $50,000 worth of debt and use the
Funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 9 percent. What are
The earnings per share at the break-even level of earnings before interest and taxes? Ignore taxes.