The percentage change in EBIT is equal to the percentage

in /by

The percentage change in EBIT is equal to the percentage

B. The percentage change in EBIT is equal to the percentage change in EPS (or ROE). A. The percentage change in EBIT is greater than the percentage change in EPS (or ROE). If debt financing (long-term bonds) is used, which of the following is true for any given change in EBIT? A. The percentage change in EBIT is greater than the percentage change in EPS (or ROE). B. The percentage change in EBIT is equal to the percentage change in EPS (or ROE). C. The percentage change in EBIT is less than the percentage change in EPS (or ROE). D. The degree of operating leverage is less than one. E. None of the above Easy Lawnmowers, Inc. Expects the following results for 1999: Sales (unit price = $100) $5,000,000 Variable operating costs 1,000,000 Fixed operating costs 2,000,000 EBIT $2,000,000 Interest 500,000 EBT $1,500,000 Tax (at 40%) 600,000 EAT (available to common stockholders) $ 900,000 Shares outstanding $ 450,000 Suppose Easy”s EBIT falls short of expectations, dropping to $1,700,0

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