Analysts have evaluated the Wright Sign Company and discovered that when sales are $400,000, EBIT equals $125,000,
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Analysts have evaluated the Wright Sign Company and discovered that when sales are $400,000, EBIT equals $125,000, the company’s degree of operating leverage (DOL) is 2.0, its degree of financial leverage (DFL) is 4.0, and EPS equals $2.50. According to this information, what will Wright’s EBIT be if sales actually equal $360,000 rather than $400,000? What will the EPS be?
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Sales 400000 EBIT 125000 DOL 20 DFL 40 EPS 250 If sales turn o...View the full answer
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