4 The following table is extracted from the income statement of a company and the unit price () of the company's product is 7 OMR, variable cost per unit is 2 OMR and the company has 1000 common stock outstanding Answer the following questions based on the information given in the table YEAR 2 20,000 YEAR 1 12,000 2,000 10,000 3,000 7,000 2,500 Earnings before interest and taxes (EBIT) Less Interest Net profit before tax Less Tax(0 30) Net profit after tax Less Preferred stock dividend Earings available for common shareholders Earnings Per Share(EPS) 2 2 2 4,500 2 4 5 A Complete the table for the YEAR 2 B Calculate the Degree of Financial Leverage (DFL) C Interpret the

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4  The following table is extracted from the income statement of a company and the unit price () of the company's product is 7 OMR, variable cost per unit is 2 OMR and the company has 1000 common stock outstanding Answer the following questions based on the information given in the table  YEAR 2 20,000   YEAR 1 12,000 2,000 10,000 3,000 7,000 2,500   Earnings before interest and taxes (EBIT) Less  Interest Net profit before tax Less  Tax(0 30) Net profit after tax Less  Preferred stock dividend Earings available for common shareholders Earnings Per Share(EPS) 2 2 2 4,500 2 4 5   A  Complete the table for the YEAR 2  B  Calculate the Degree of Financial Leverage (DFL) C  Interpret the

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4. The following table is extracted from the income statement of a company and the unit price () of the company's product is 7 OMR,

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