Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $5,062,929. The firm's interest expense was $2,022,056.

What will be the resulting percentage change in earnings per share if they expect operating profit to change 5.6 percent?

(Calculate the degree of financial leverage first).

Answer rating: 100% (QA)

First we need to calculate the Degree of Operational Leverage DOL and Degree of Financial Leverage DFL to ultimately derive the Degree of Combined Lev... View the full answer