Ohio Steel has a degree of operating leverage of 2.9. The company predicted EBIT of $332,000 and EPS of $5.7 for the year. Actual EBIT were $284,000 and EPS were $2.42. What is the degree of financial leverage? What is the degree of total leverage? What were earnings before taxes (EBIT - Interest)? What was the company's gross profit (sales - variable costs)?
Ohio Steel has a degree of operating leverage of 2.9. The company predicted EBIT of $332,000 and EPS of $5.7 for the year. Actual EBIT were $284,000 and EPS were $2.42. What is the degree of financial leverage? What is the degree of total leverage? What were earnings before taxes (EBIT - Interest)? What was the company's gross profit (sales - variable costs)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ohio Steel has a degree of operating leverage of 2.9. The company predicted EBIT of $332,000 and EPS of $5.7 for the year. Actual EBIT were $284,000 and EPS were $2.42.
What is the degree of financial leverage?
What is the degree of total leverage?
What were earnings before taxes (EBIT - Interest)?
What was the company's gross profit (sales - variable costs)?
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