What is the estimate eps

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Question - Your company's variable cost is 60% of Sales, where Sales is €200,000 and €300,000, for 2017 and 2018, respectively. Fixed cost is €40,000. The company also has Total Assets of €200,000 with 50-50 Debt-to-Asset ratio. Interest rate for any debt is 12% and the tax rate is 40%. Your company has 5,000 shares outstanding. 

Required -

a. Calculate the DOL, DFL, DTL?

b. What is the estimate EPS for 2018?

Reference no: EM132953022

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