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The following information pertains to the Bees Burger Restaurant chain: Sales $600,000 Variable costs 300,000 Total...

The following information pertains to the Bees Burger Restaurant chain:
Sales $600,000
Variable costs 300,000
Total contribution margin 300,000
Fixed costs 100,000
EBIT 200,000
Interest expense 50,000
Earnings before taxes 150,000
Taxes (30%) 45,000
Net income $105,000
1. If sales increase by 10%, what will be the new level of EPS if the firm has
100,000 shares outstanding?
2. What creates total or combined leverage in a firm’s capital structure?

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jeff jeffy answered 1 year ago
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