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Author Question: If Ubu's Pear Farm expects EBIT to increase 10% next year after a 15% increase in sales, what is the ... (Read 28 times)

bb

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Question 1

If sales increase 25%, EBIT increases 50%, debt increases 75%, and working capital increases 12.5%, what is the degree of operating leverage?
◦ 2
◦ 5
◦ 3
◦ 6
◦ 4

Question 2

If Ubu's Pear Farm expects EBIT to increase 10% next year after a 15% increase in sales, what is the expected percentage change in EPS if the degree of total leverage is 4?
◦ 16%
◦ 20%
◦ 45%
◦ 30%
◦ 60%


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Marked as best answer by bb on Apr 25, 2021

chreslie

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bb

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Reply 2 on: Apr 25, 2021
Wow, this really help


Joy Chen

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Reply 3 on: Yesterday
:D TYSM

 

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