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Unformatted text preview: 1,800,000 1,550,000 Earnings per share with new project l 4.140 l 3.600 l 3.875 Req. 2 (recommendation) The highest earning per share would most likely come from borrowing at 6%. Plan A offers $4.14 per share. The other two plans, B and C, offer only 3.6 and 3.875 per share. The borrowing at 6% may put the Email Designers in debt but if the directors were to chose to share equity, loss of company control is possible with plans B and C. So I would advise that the directors chose plan A....
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- Spring '11