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 R100,000.What will be the EBIT for this firm if sales do not increase?
A) R113,412
B) R100,000
C) R84,375
D) R67,568
E) R42,115
Correct Answer:
Verified
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