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

question 31

Multiple Choice

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.

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Definitions:

Adolescent

A person in the transitional stage of physical and psychological development that occurs between childhood and adulthood.

Optimistic Explanatory Style

A tendency to explain positive events as having permanent, personal, and pervasive causes.

Cultures

The customs, arts, social institutions, and achievements of a particular nation, people, or other social group.

Age

The length of time that a person or organism has been alive or a thing has existed.