Question: Selected financial statement values for HQ are shown in the table below. What is the degree of financial leverage for HQ given the change in

Selected financial statement values for HQ are shown in the table

Selected financial statement values for HQ are shown in the table below. What is the degree of financial leverage for HQ given the change in revenues from Year 1 to Year 2? Selected Accounting Information HQ Sustainable Maritime Industries Inc. ($000s) Year 1 Year 2 EBIT 12,954 22,670 Interest 3,648 3,648 Pre-Tax Income 9,306 19,022 Taxes 3,722 7,609 Net Income 5,584 11,413 Shares Outstanding 14,661 14,661 EPS 0.3808 0.7785 O 1.39 1.30 O 1.05 O 1.20

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