Use the table to answer the questions that follow.

a. Assume that Emirates decides to use the proceeds from the bond issue to repurchase shares. How would you expect this decision to impact total leverage? 

b. Calculate the percentage change in revenue and its EPS in 2016 and in 2017. What was Emirates’ total leverage in 2016 and in 2017?

c. Calculate the percentage change in revenue and its EPS in 2018 and in 2019. What was Emirates’ total leverage in 2018 and in 2019?

d. Compare your answers to parts b and c with your answer to part a. Do they match?

e. What do you think happened to Emirates’ beta between 2013 and 2019?

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Year 2013 2014 2015 2016 2017 2018 2019 Sales (AED million) 15,152 17,342 18,777 20,297 21,788 25,363 36,289 EPS (AED) 0.5 0.8 1.14 1.16 1.35 1.64 2.46