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Trammel, Inc. has sales of $20,000,000, and has 250,000 shares outstanding. For the firm, costs are 68% of sales. Interest expenses are $1,750,000, and
Trammel, Inc. has sales of $20,000,000, and has 250,000 shares outstanding. For the firm, costs are 68% of sales. Interest expenses are $1,750,000, and the firm pays taxes at the 21% statutory rate. Based on these parameters, if sales increase by 15%, what is the percentage increase in Earnings per Share (EPS)?
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First we need to calculate the earnings before interest and taxes EBIT EBIT Sales Costs Interest Exp...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
