Multiple Choice
Assume that a firm has a degree of financial leverage of 1.65.If sales increase by 20%,the firm will experience a 60% increase in EPS,and it will have an EBIT of $100,000.What will be the EBIT for this firm if sales do not increase?
A) $86,533
B) $71,867
C) $73,333
D) $90,200
E) $89,467
Correct Answer:
Verified
Correct Answer:
Verified
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