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Assume that a firm has a degree of financial leverage of 1.10. If sales increase by 25%, the firm will experience a 50% increase in
Assume that a firm has a degree of financial leverage of 1.10. If sales increase by 25%, the firm will experience a 50% increase in EPS, and it will have an EBIT of $105,000. What will be the EBIT for this firm if sales do not increase? Do not round intermediate calculations.
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