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Degree of financial leverage Northwestem Savings and Lom has a current capital structure consist of $250.000 et 1er en dete and 2.000 of common stock.
Degree of financial leverage Northwestem Savings and Lom has a current capital structure consist of $250.000 et 1er en dete and 2.000 of common stock. The from prys tes at the tale of 21% Using ERIT value of $80,000 and $120.000, determine the sociale carting pera (EPS) b. Using $80.000 of EBIT as a base calculate the degree of financierge DFL) Rework parts and bassuming that the firm $100.000 of 16 let) et and 3.000 of common stock Calculate the EPS for EBIT value of 580.000 below Round to the rest or accept the whishoudend the $ EBIT Les rest Net profits before me LI Net profits EPS .000 hrs 5 5 EBIT Sensitivity Stewart Industries sells its finished product for $9.00 per unit. Its fixed operating costs are $20,000, and the variable operating cost per unit is $5.00 a. Calculate the firm's eamings before interest and taxes (EBIT) for sales of 10,000 units. b. Calculate the firm's EBIT for sales of 8,000 and 12,000 units, respectively c. Calculate the percentage changes in sales (from the 10,000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated in part (b) d. On the basis of your findings in part (e), comment on the sensitivity of changes in EBIT in response to changes in sales a. The firm's eamings before interest and taxes is $. (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer CA 7 parts remaining
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