Business, 05.05.2020 08:27 daniecott

(Leverage and EPS) You have developed the following pro forma income statement for your corporation: LOADING It represents the most recent year's operations, which ended yesterday. Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: a. If sales should increase by 30 percent, by what percent would earnings before interest and taxes and net income increase? b. If sales should decrease by 30 percent, by what percent would earnings before interest and taxes and net income decrease? c. If the firm were to reduce its reliance on debt financing such that interest expense were cut in half, how would this affect your answers to parts a and b?

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(Leverage and EPS) You have developed the following pro forma income statement for your corporation:...

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