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If the firm has 100 in revenues this year, and expected 120 next year, and 70 in EBIT this year with expectation of 100 next

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If the firm has 100 in revenues this year, and expected 120 next year, and 70 in EBIT this year with expectation of 100 next year, and 50 in EPS this year with expectation of 85 next year, what is the degree of operation leverage DOL? 2.14 1.63 3.5 04 The firm's stock price is $10, with the $0.80 dividend just paid, expected to grow at 5%. The flotation cost of selling new common stock is $1. The tax rate is 21%. What's the cost of retained earnings (internal equity)? 15% 13.4% 14.33% 11.32%

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