Silver Polygon, Inc. management has determined that if revenues were to increase by 10 percent, then EBIT
Question:
Silver Polygon, Inc. management has determined that if revenues were to increase by 10 percent, then EBIT would increase by 25 percent to $100,000. The fixed costs (cash only) for the firm are $100,000. Given the same 10 percent increase in revenues, what would be the corresponding change in EBITDA?
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Since a 10 percent increase in revenue will drive a 25 percent corresponding increase in EBIT ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
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