Part A

As CFO, you're ready to walk into the Board Meeting with the monthly financial report, when your Banker calls, and says they are pulling your loan, because of your TIE. You should.......

A. recalculate your firm's total interest to its equity to confirm

B. recalculate your firm's total interest to its earnings after tax to confirm

C. recalculate your firm's interest expense to net operating income to confirm

D. recalulate your firm's interest expense to EBITA to confirm

E. check the mirror to see if you have food from lunch on your tie to confirm

Part B

If sales of a firm were to go from $45,000 to $51,000 and DTL was 12 with EPS of $0.32, the new EPS would be...........

A. not enough data to calculate

B. $0.83

C. $0.51

D. $0.36

E. $0.67