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Author Question: Gentech, Inc. is an integrated circuit (microchip) manufacturer based out of New Jersey. Its ... (Read 107 times)

nevelica

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Gentech, Inc. is an integrated circuit (microchip) manufacturer based out of New Jersey. Its principal products include microprocessors and motherboard chipsets. Selected financial statement values for Gentech are shown in the table, below. What is the degree of financial leverage for Gentech given the change in earnings from Year 1 to Year 2?

Gentech Inc. ($000s)
Year 1Year 2
EBIT$9,000$9,800
Interest5050
Pre-Tax Income8,9509,750
Taxes2,9003,100
Net Income6,0506,650
Shares Outstanding14,50014,500
EPS0.41720.4586

◦ 1.12
◦ 1.01
◦ 0.67
◦ 3.11
◦ 1.54


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Marked as best answer by nevelica on Apr 25, 2021

livaneabi

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nevelica

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Reply 2 on: Apr 25, 2021
:D TYSM


T4T

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Reply 3 on: Yesterday
Excellent

 

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