You'll need to figure out how many shares were repurchased; that will tell you the denominator for the EPS calculation.

You'll need to figure out the amortization of the debt discount.

EBIT is zero, so subtract the interest and discount amortization; calculate the tax benefit at 30% to give you the net loss. Divide that by outstanding shares to get EPS

How do I solve such an equation as this? My textbook mentions none of it.

Here is the problem I need to solve: I dont want you to do it for me I just want to know how to do it myself.

XXY Corp. is currently an all equity firm with 10,000 shares outstanding at a market price of $25 a share. Theyve decided to issue debt and use that money to repurchase the shares outstanding. Face value of the 30-year bond is $322,615.10. Annual interest paid is $2,500 with YTM of 9%. What are the EPS at the break-even level of earnings before interest and taxes? Tax rate is 30%

Thank you so much