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Analysts have evaluated the Wright Sign Company and discovered that when sales are $400,000, EBIT equals $125,000, the companys degree of operating leverage (DOL) is
Analysts have evaluated the Wright Sign Company and discovered that when sales are $400,000, EBIT equals $125,000, the companys degree of operating leverage (DOL) is 2.0, its degree of financial leverage (DFL) is 4.0, and EPS equals $2.50. a. According to this information, what will be Wrights EBIT if sales actually equal $375,000 rather than $400,000? b. What will EPS be?
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