Brookman Inc's latest EPS was $2.75, its book value per share was $22.75, it had 275,000 shares outstanding, and its debt/total invested capital ratio was 44%. The firm finances using only debt and common equity, and its total assets equal total invested capital. How much debt was outstanding? Do not round your intermediate calculations.   a. $6,256,250     b. $4,321,429     c. $5,500,000     d. $4,915,625     e. $7,962,500

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 22EB: Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000...
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Brookman Inc's latest EPS was $2.75, its book value per share was $22.75, it had 275,000 shares outstanding, and its debt/total invested capital ratio was 44%. The firm finances using only debt and common equity, and its total assets equal total invested capital. How much debt was outstanding? Do not round your intermediate calculations.
  a. $6,256,250  
  b. $4,321,429  
  c. $5,500,000  
  d. $4,915,625  
  e. $7,962,500  
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