Table 175

Proposed Capital Structure versus Original Capital Structure with Homemade Leverage

Proposed Capital Structure

Recession

Expected

Expansion

EPS $ .50 Earnings for 100 shares 50.00 Net cost = 100 shares x $20 = $2,000

$ 3.00 300.00

$ 5.50 550.00

Original Capital Structure and Homemade Leverage

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