Question
If sales increase to $5,500,000, what is the forecast of the EPS. Sales $5,000,000 Variable Operating Cost 1,000,000 Fixed Operating Cost 2,000,000 EBIT $2,000,000 Interest
If sales increase to $5,500,000, what is the forecast of the EPS.
Sales $5,000,000
Variable Operating Cost 1,000,000
Fixed Operating Cost 2,000,000
EBIT $2,000,000
Interest 500,000
EBT $1,500,000
Tax (at 40%) 600,000
EAT $ 900,000
Preferred Dividends 100,000
Earnings available for CS $ 800,000
Shares Outstanding 400,000
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
