The following table is from the income statement of Al Shams Private Ltd. Answer the following questions after analysing the given table. Details Year 1 Year 2 Sales 8,500 20,000 EBIT 28,000 72,000 Earnings available for common stockholders(EAC) 9,600 38,000 Number of common stock 1,000 1,000 Earnings per share (EPS) ? ?   Complete the table for EPS in the year 1 and year 2. Calculate the DOL, DFL and DTL Interpret your answer DOL, DFL and DTL

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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  • The following table is from the income statement of Al Shams Private Ltd. Answer the following questions after analysing the given table.

Details

Year 1

Year 2

Sales

8,500

20,000

EBIT

28,000

72,000

Earnings available for common stockholders(EAC)

9,600

38,000

Number of common stock

1,000

1,000

Earnings per share (EPS)

?

?

 

  1. Complete the table for EPS in the year 1 and year 2.
  2. Calculate the DOL, DFL and DTL
  3. Interpret your answer DOL, DFL and DTL
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