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%

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Definitions:

Populism

A political approach that strives to appeal to ordinary people who feel that their concerns are disregarded by established elite groups.

Communitarianism

A social philosophy emphasizing the importance of community in the functioning of political life, often valuing community goals over individual ones.

Equality of Condition

A social state in which people have the same status in certain respects, including civil rights, freedom of speech, property rights, and equal access to social goods and services.

Equality of Opportunity

The principle that all individuals should have an equal chance to pursue their own goals and interests, typically referring to non-discrimination in access to education, employment, and other resources.