A firm has an increase in EPS of 5%,increase in EBIT of 3%,and a degree of total leverage of 2.What is the firm's percentage change in sales?
A) 2.5%
B) 1.5%
C) 1.0%
D) 4.2%
E) Cannot be determined with the information provided.

Question

Quizplus · Accepted Answer

DTL = 11ea7fdb_fc59_cb75_a768_2f4ca6e35586_TB2902_11 × 11ea7fdb_fc59_f286_a768_67c16b7e60ca_TB2902_11 2 = 11ea7fdb_fc59_f287_a768_415503bd55dc_TB2902_11 × 11ea7fdb_fc59_f288_a768_c5b01be0f209_TB2902_11 X = 11ea7fdb_fc59_f289_a768_43c249f340c3_TB2902_11 = 2.5%

A Firm Has an Increase in EPS of 5%,increase in EBIT