Salmon Fresh Corporation is a successful medium size seafood restaurant. Its current capital structure is...
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Accounting
Salmon Fresh Corporation is a successful medium size seafood restaurant. Its current capital structure is made up of $250,000 of 10% (annual interest) Debt, and 10,000 shares of common stock. The firm pays taxes at the rate of 40%. a. What is salmon Fresh's EPS if the company's EBIT for the current year is $100,000? b. If the EBIT increase to $125,000 what is the company's EPS c. What is the degree of financial leverage of the company? d. Interpret the result
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