question archive Irresistible Chips is reviewing its financial condition
Irresistible Chips is reviewing its financial condition
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Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,332,021. The firm's interest expense was $2,414,889.
What will be the resulting percentage change in earnings per share if they expect operating profit to change 0.3 percent?
(You should calculate the degree of financial leverage first).
(Write the percentage sign in the "units" box).
Round the answer to two decimals
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First, we need to compute the degree of financial leverage then multiply it to the change in operating income which is 3%.
Please see the attached file for the complete solution
