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9. Blums, Inc., expects its operating income over the coming year to equal $1.5 million, with a standard deviation of $300,000. Its coeffi cient of variation is equal to 0.20. Blums must pay interest charges of $700,000 next year and preferred stock dividends of $240,000. Blums’ marginal tax rate is 40 percent. What is the probability that Blums will have negative earnings per share next year? (Assume that operating income is normally distributed.),———————————————————,16. Scherr Corporation’s current EPS is $5.00 at a sales level of $10,000,000. At this sales level, EBIT is $2,000,000. Scherr’s DCL has been estimated to be 2.0 at the current level of sales. Sales are forecast to have an expected value of $11,000,000 next year, with a standard deviation of $500,000. Th e coefficient of variation of sales is equal to 0.045. What is the probability that EPS will be less than $5.00 per share next year, assuming that sales are normally distributed?,,I already have the answer to both problems, but I cannot figure out how to solve the problem on my own. Please be very thorough in helping me understand where all of the numbers are coming from.

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