Refer to the scenario above.What would the unleveraged and leveraged EPSs look like if EBIT were only $1,200?
A)All-equity EPS = $2.00,leveraged-equity EPS = $1.50
B)All-equity EPS = $3.00,leveraged-equity EPS = $2.00
C)All-equity EPS = $2.00,leveraged-equity EPS = $3.00
D)All-equity EPS = $4.50,leveraged-equity EPS = $3.00

Question

Quizplus · Accepted Answer

If EBIT is $1,200, the all-equity EPS would be $2.00, and the leveraged-equity EPS would be $1.50, considering the impact of interest expenses on the leveraged scenario.

Refer to the Scenario Above