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Question 3 (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
Question 3 (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 and $65,000 in fixed costs. It's EPS is $0.54 and they expect a 35% increase in sales. Based on the firm's degree of total leverage, what will the new EPS be after the change in sales? $0.83 $1.56 $0.73
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