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  3. given the following information, which of the foll

Given the following information, which of the following is most correct? Historical Year Projected...

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Finance

Given the following information, which of the following is most correct?

Historical Year Projected Year

Sales. 350,000. 420,000

EBIT 200,000 250,000

EBT 180,000 236,000

Net Income 117,000 153,400

EPS 1.19 1.56

A.Fixed cost and interest expense increasing proportionately with sales.

B. The degree of financial leverage is 1.325

C. The degree of operating leverage is 0.669

D. None of these choices are correct

E.The degree of operating leverage is 1.555

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