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Barnies Sports company sells sports equipment at one price, $15 each. The firm has variable costs of $180,000 on sales of 52000 units of sports
Barnies Sports company sells sports equipment at one price, $15 each. The firm has variable costs of $180,000 on sales of 52000 units of sports equipment. Operating income this year is 111174 . Interest expense is 24869. What is its degree of financial leverage at the current level of EBIT? Suppose that EBIT were to decline 10 percent next year, What would be the percentage decline in earnings per share?
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