The following information pertains to the Classic Burger Restaurant chain:
a.If sales increase by 10%,what will be the new level of EPS if the firm has 100,000 shares outstanding?
b.What is the percentage increase in EPS?
Explain the difference between the percentage increase in sales and the percentage increase in EPS.
Correct Answer:
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b.($12.60 - $10.50)/$10.50 = .20 or...View Answer
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