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

Selected financial statement values for HQ are shown in the table below. What is the degree of total 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

Sales 67,723 69,400

EBIT 12,954 13,339

EPS 0.5036 0.5192

a. 1.35

b. 1.05

c. 1.25

d. 1.16

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