In lean operations, input resources arrive for processing only after the preceding batch has been completed. question 10 options
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Answer:
Degree of Financial Leverage = 0.64
Explanation:
Degree of Financial leverage refers to the proportion of debt in the capital structure of a company. It also signifies earnings for shareholders i.e per share earnings of shareholders (EPS) with respect to operating income earned by a company.
In the given case, eps before = $1.25
eps afterwards = $1.37
Degree of financial leverage is expressed as:
Wherein,
EPS = Earnings per share
EBIT = Earnings before interest and taxes
Percentage change in EPS = = 9.6%
Percentage change in EBIT = 15%
Hence Degree of Financial Leverage = = 0.64