Problemlast year cayman corporation had sales of 7000000, Ask an Expert

Accounting

Problem:

Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000. In addition, they paid $480,000 in interest to bondholders. Cayman has a 35% marginal tax rate.

Required:

Question: If Cayman's sales increase 7%, what should be the increase in earnings per share?

8.7%
13.9%
11.2%
10.8%
13.3%

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167324

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