The plastic corporation has a current capital structure, Ask an Expert

Management Studies

The Plastic Corporation has a current capital structure consisting of $150,000 of 15% debt and 3,500 shares of common stock. The tax rate is 40%

a. Determine the earnings per share (EPS) when EBIT is $75,000 and $99,500.

b. Calculate the degree of financial leverage (DFL) using EBIT of $75,000 as a base.

c. What is the meaning The Plastic Corporation’s DFL?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91881239

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