Multiple Choice Questions on If financial leverage is 2 and EPS increases by 10 then what percentage of EBIT will increase n........... for Punjab Government (Allied) Exams Preparation

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Multiple Choice Questions

If financial leverage is 2 and EPS increases by 10 then what percentage of EBIT will increase n...........

Finance( Revenue Account ) Leverage
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    If financial leverage is 2 and EPS increases by 10%, then what percentage of EBIT will increase?

     

    10%

     

    Incorrect Answer

    15%

     

    Incorrect Answer

    5% 

     

    Correct Answer

    12.5

     

    Incorrect Answer
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    Explanation:

     Financial Leverage = Change in EPS/Change in EBIT 10/2= 5%

    By: Vikas Goyal
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