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Gentech, Inc. is an integrated circuit (microchip) manufacturer based out of New Jersey. Its principal products include microprocessors and motherboard chipsets. Selected financial statement values
Gentech, Inc. is an integrated circuit (microchip) manufacturer based out of New Jersey. Its principal products include microprocessors and motherboard chipsets. Selected financial statement values for Gentech are shown in the table, below. What is the degree of total leverage for Gentech given the change in revenues from Year 1 to Year 2?
Gentech Inc. ($000s)
| ||
Year 1 | Year 2 | |
Sales | $70,000 | $75,000 |
EBIT | 9,000 | 9,800 |
EPS | 0.4172 | 0.4586 |
Group of answer choices
1.39
1.11
0.96
1.24
0.54
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