Dittmar Corp

question 124

Multiple Choice

Dittmar Corp. is considering an operational change that will increase its DOL from 2.0 to 3.0. It will be funding this change with debt so that its DFL will increase from 1.2 to 1.5. Analysts believe that the overall change could increase sales by as much as 10% if it is successful, but could decrease sales by 6% if it is not successful. What is the range of possible changes in EPS based on this information?

• A)Decrease of 18% to an increase of 30%
• B)Decrease of 9% to an increase of 15%
• C)Decrease of 6% to an increase of 10%
• D)Decrease of 27% to an increase of 45%
• E)Decrease of 24% to an increase of 40%

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Definitions:

Brown versus Board of Education

A landmark 1954 United States Supreme Court case that declared state laws establishing separate public schools for black and white students to be unconstitutional, thereby overturning the "separate but equal" doctrine and significantly advancing the Civil Rights Movement.

Earl Warren

The 14th Chief Justice of the United States, known for landmark decisions on civil rights, including Brown vs. Board of Education.

Rosa Parks

An American activist whose refusal to give up her bus seat in 1955 became a pivotal moment in the Civil Rights Movement.

Bus Arrest

refers to incidents where individuals are detained by law enforcement for actions or conduct on a bus, often highlighting broader social issues.