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Author Question: If sales are expected to increase 25%, EBIT is expected to increase 15%, and EPS is expected to ... (Read 54 times)

BrownTown3

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Question 1

If EBIT increases 15%, EPS increases by 30%, debt increases by 45%, and the tax rate declines by 5%, what is the degree of financial leverage?
◦ 2
◦ 1
◦ 9
◦ 3
◦ 6

Question 2

If sales are expected to increase 25%, EBIT is expected to increase 15%, and EPS is expected to increase 10%, what is the degree of operating leverage?
◦ 2.5
◦ 6.0
◦ 1.5
◦ 0.6
◦ 1.7


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Marked as best answer by BrownTown3 on Apr 25, 2021

cloud

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BrownTown3

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


bulacsom

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Reply 3 on: Yesterday
Wow, this really help

 

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