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Question 2 (1 point) A firm has $5,000,000 in capital and 60% of that is in equity. It has an interest rate of 8% on

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Question 2 (1 point) A firm has $5,000,000 in capital and 60% of that is in equity. It has an interest rate of 8% on debt and has $565,000 in EBIT. It's EPS is $0.54 and they expect a 25% increase in EBIT. Based on the firm's degree of financial leverage, what will the new EPS be after the change in EBIT? $0.38 $0.73 $0.54 $0.47

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