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Kenzel Has an EPS of $4

Question 37

Multiple Choice

Kenzel has an EPS of $4.20 and sales are $9 million.If the firm has a degree of operating leverage of 4.0 and a degree of financial leverage of 5.2, forecast EPS if the firm expects a 4% sales decline.


A) $0.71
B) $3.49
C) $4.03
D) $3.33

Correct Answer:

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