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I would need help for quesiton 9 and 10. Thank you very much! The following information is related to questions 9 and 10 Bob's Baked
I would need help for quesiton 9 and 10.
Thank you very much!
The following information is related to questions 9 and 10 Bob's Baked Goods Company reported the following income statement for 2007: Sales $1,800,000 Variable Costs 600,000 Fixed Operating Costs 500,000 EBIT 700,000 Interest Expense 100,000 EBT 600,000 Taxes (40%) 240,000 Net Income $360,000 Earnings Per Share $3.60 9. If sales increase by 20%, what will be the percentage of EPS increase (the firm has 100,000 shares outstanding)? (ILO 1/2 - 1 point) 10. Is the company using operating leverage (and/or) financial leverage? Justify your answer. (ILO 2-1 point)Step by Step Solution
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