If a firm has current earnings per share of $2 and a degree of financial leverage of 4, a 10% increase in sales would result in earnings per share of:
A) $2.80
B) $8
C) $2.20
D) cannot tell from this information

Question

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The Answer of If a firm has current earnings per share of $2 and a degree of financial leverage of 4, a 10% increase in sales would result in earnings per share of:
A) $2.80
B) $8
C) $2.20
D) cannot tell from this information

If a Firm Has Current Earnings Per Share of $2