bapswarrior

From your question, I think you are wondering how the 4 EPS figures are derived, not how the associated probabilities are calculated.

The four EPS figures (e.g. $2.60, $2.45 etc on pg 338 of the TB) are just assumptions. They are not deriving them. What they are deriving is the probability of each of the 4 possible EPS actually occurring. For example, the probability of an EPS of $2.60 is 0.60*0.25 = 0.15