Question

Analysts have evaluated the Sivar Silver Company and discovered that if sales are $800,000 the following will exist:
Degree of operating leverage (DOL) 4.0X
Degree of financial leverage (DFL) 2.0x
Earnings before interest and taxes (EMT) $50,000
Earnings per share (EPS) $4.00
According to this information, what will Sivar's EBIT be if sales actually turn out to be $720,000 rather than $800,000? What will the EPS be?



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  • CreatedOctober 06, 2015
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