If Ubu's Pear Farm Expects EBIT to Increase 10% Next

question 81

Multiple Choice

If Ubu's Pear Farm expects EBIT to increase 10% next year after a 15% increase in sales,what is the expected percentage change in EPS if the degree of total leverage is 4?

• A) 16%
• B) 20%
• C) 45%
• D) 30%
• E) 60%

Understand the law of demand and how price affects quantity demanded.

Comprehend the characteristics and implications of competitive markets.

Distinguish between movements along the demand curve and shifts of the demand curve.

Identify the factors that cause shifts in the demand curve.

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Definitions:

Wave-cut Platform

A flat, often wide area at the base of a cliff created by the erosion of waves at the shore.

Estuaries

Coastal bodies of water where fresh water from rivers meets and mixes with salt water from the ocean.

Irregular Coast

A coastline that has a complex shape, often characterized by numerous bays, peninsulas, and inlets.

Submarine Canyons

Steep-sided valleys cut into the seabed of the continental slope, sometimes extending well onto the continental shelf.