Author Question: A firm has an increase in EPS of 5%, increase in EBIT of 3%, and a degree of total leverage of 2. ... (Read 80 times)

crazycityslicker · **on:** Apr 25, 2021

Question 1

A company posts a 25% increase in sales, a degree of financing leverage of 2.4, and a degree of total leverage of 3.2. Find the % change in the earnings per share.
◦ 50%
◦ 33.33%
◦ 80%
◦ 24%
◦ 30%

Question 2

A firm has an increase in EPS of 5%, increase in EBIT of 3%, and a degree of total leverage of 2. What is the firm's percentage change in sales?
◦ 2.5%
◦ 1.5%
◦ 1.0%
◦ 4.2%
◦ Cannot be determined with the information provided.

jessofishing · **Reply #1 on:** Apr 25, 2021

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