Kenzel Has an EPS of $4

question 38

Multiple Choice

Kenzel has an EPS of $4.20 and sales are $9 million.If the firm has a degree of operating leverage of 4.0 and a degree of financial leverage of 5.2, forecast EPS if the firm expects a 4% sales decline.

• A)$0.71
• B)$3.49
• C)$4.03
• D)$3.33

---

Definitions:

Workplace

The physical or virtual space where employees conduct their job responsibilities and tasks.

Career Advancement

The process of moving forward in one’s career, often marked by increased responsibilities, higher status, and better compensation.

Commitment

A state or quality of being dedicated to a cause, activity, or goal, showing loyalty or allegiance.

Reluctant

Feeling or showing aversion, hesitation, or unwillingness to do something.