Question
Assume that Herron, Inc. has a degree of financial leverage of 1.50. If EBIT increases from $150,000 this year to $165,000 next year, how much
Assume that Herron, Inc. has a degree of financial leverage of 1.50. If EBIT increases from $150,000 this year to $165,000 next year, how much will earnings per share (EPS) increase, assuming no change in capital structure?
| a. | 6.7% | |
| b. | Cannot be determined from the information given. | |
| c. | 22.5% | |
| d. | 15.0% | |
| e. | 10.0% |
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Essential Personal Finance A Practical Guide For Students
Authors: Lien Luu, Jonquil Lowe, Jason Butler, Tony Byrne
1st Edition
1138692956, 978-1138692954
