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INFORMATION A Beke corporation is a successful medium size seafood restaurant. Its current capital structure is made up of $ 350,000 of 20% (annual interest)
INFORMATION A Beke corporation is a successful medium size seafood restaurant. Its current capital structure is made up of $ 350,000 of 20% (annual interest) Debt, and 10,000 shares of common stock. The firm pays taxes at the rate of 36%. The company's EBIT for the current year is '$ 100,000 and shift upwards to $150,000 Using Information A: What is Beke's EPS when EBIT is $100,000 and $150,000 Respectively? * 0 1.95 and 5.2 0 3 2.3 and 3 O 3 and 4.2 O 4.2 and 6 Using information A: What is the Degree of Financial Leverage of the Company? * O 1.22 time O 3.33 times O 1.33 time O 3.5 times
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