(continuation of problem #3) Suppose that Disney decides to borrow money to make the investment above. They expect that interest expense on the new loan would be $5 million each year for 4 years. What would be the effect on EPS each year, if Disney has 1 million shares outstanding? 4.

(continuation of problem #3) Suppose that Disney decides to borrow money to make the investment above. They expect that interest expense on the new loan would be $5 million each year for 4 years. What would be the effect on EPS each year, if Disney has 1 million shares outstanding? 4.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Question

This is a continuation of the last problem I sent on Disney in number 3. I need help on problem 4. And how do I represent it with formulas in excel.

(continuation of problem #3) Suppose that Disney decides to borrow money to make the
investment above. They expect that interest expense on the new loan would be $5 million
each year for 4 years. What would be the effect on EPS each year, if Disney has 1 million
shares outstanding?
4.

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