Irresistible Chips is reviewing its financial condition. The firm generated an o

Question

Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,735,720. The firm's interest expense was $2,881,860. What will be the resulting percentage change in earnings per share if they expect operating profit to change 3.8 percent? (You should calculate the degree of financial leverage first). (Write the percentage sign in the 'units' bax) Round the answer to two decimais Your Answer: onse Answer units sponse Save Next Page Page 2 of 4 Save All Responses Go to Submit Quiz Status

Explanation / Answer

Degree of financial leverage

=3735720/(3735720-2881860)

=4.3751

% change in EPS=4.3751*3.8%=16.63%

the above is the answers

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