Question: 1 ) Use December 2 0 2 0 and December 2 0 2 1 Tesla Inc to compute DOL DFL DTL and answer the following

1) Use December 2020 and December 2021 Tesla Inc to compute DOL DFL DTL and answer the following questions:
2)Use DOL to compute % change of EBIT for -10%,-5%,5%10% variation in Sales Revenue You have now 5 data points with the middle one being the current year EBIT meaning 0
3) Use DFL to compute % change of EPS for -10%-5%,5%10% variation in EBIT You have now 5 data points with the middle one being the current year
4) Compute the average % change for EBIT and EPS Compute the standard deviations of % change of EBIT and EPS
5) Identify for both the range for 68% probability
6)Compute the breakeven EBIT for the given fiscal year Hint for breakeven the EPS is zero use the EPS formula from point 8.
7) Compute the DEBITs and EPSs for the upper and lower bounds in point 5 Is the breakeven EBIT in the 68 range Use the following figure of the normal distribution as a guide for point 5.
8) Assume now that the company has no debt which increases company shares by 20 consider this plan E all equity and the original situation as plan L leveraged Use the formula below to compute the EBIT for the EPS indifference point between the two plans Which plan is better before the indifference point EBIT and which is better after guide yourself by figure 12.2 in the textbook Can you draw a similar graph knowing the breakeven EBIT point for plan L computed at point 6 and the EBIT for the EPS indifference point? Use the formula: EPS&=((EBIT-I)(1-T)-D_ps)/(Shrs_C )
9) Using DTL compute the EPS for the increase in sales between your fiscal year and the next and compare it with the actual EPS in the next year. Why do you think that there is a difference?

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