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
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
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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) |
? |
? |
- 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
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