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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 74 times)

bb

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on: Apr 25, 2021

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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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bb

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

marict

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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