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If a firm's degree of financial leverage (DFL) is 3, how will a 3% increase in earnings before interest and taxes (EBIT) affect earnings per

If a firm's degree of financial leverage (DFL) is 3, how will a 3% increase in earnings before interest and taxes (EBIT) affect earnings per share (EPS)? (Points : 5)

EPS will rise 3%.

EPS will rise 9%.

EPS will rise 27%.

DFL will not affect this relationship

What is the net present value of a $10,000 initial investment with future cash flows that have a present value of $12,000? (Points : 5)

-$2,000 $2,000 $10,000 $22,000

The future value of $100 today earning 6% for three years is: (Points : 5)

$98. $108. $119. $129.

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