It is December 31. Last year, Torres Industries had sales of $120,000,000, and it forecasts that next years sales will be $114,000,000. Its fixed costs have beenand are expected to continue to be$72,000,000, and its variable cost ratio is 1.00%. Torress capital structure consists of a $15 million bank loan, on which it pays an interest rate of 8%, and 750,000 shares of common equity. The companys profits are taxed at a marginal rate of 40%. Given this data, complete the following sentences:

Note: Round intermediate calculations to two decimal places.

	The companys percentage change in EBIT is ________?
	The percentage change in Torress earnings per share (EPS) is ________ ?
	The degree of financial leverage (DFL) at $114,000,000 is _______? Assume that a firms fixed capital costs remain constant across a range of operating profit (EBIT) values. The firms DFL will vary across the range of EBIT values. True False