Suppose ITC's Degree of Combined Leverage (DCL) Is 3

question 43

Multiple Choice

Suppose ITC's degree of combined leverage (DCL) is 3.00 at a sales volume of $9 million. Determine ITC's percentage change in earnings per share (EPS) if forecasted sales increase by 20% to $10,800,000.

• A) 60%
• B) 50%
• C) 32%
• D) 30%

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