Assume that a firm has a DFL of 1.25.If sales increase by 20 percent, the firm will experience a 60 percent increase in EPS, and it will have an EBIT of $100,000.What will be the EBIT for this firm if sales do not increase?
A) $113,412
B) $100,000
C) $84,375
D) $67,568
E) $42,115
Correct Answer:
Verified
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