What will its eps be sales turn out to be 10 percent lower

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Enigma Enery has forecasted that its EPS will be $4 per share this year. If the firm's degree of operating leverage (DOL) is 3.0x and its degree of financial leverage (DFL) is 2.0x, what will its EPS be if sales turn out to be 10 percent lower than expected? Show work and EXPLAIN.

Reference no: EM13892759

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What will its eps be sales turn out to be 10 percent lower : Enigma Enery has forecasted that its EPS will be $4 per share this year. If the firm's degree of operating leverage (DOL) is 3.0x and its degree of financial leverage (DFL) is 2.0x, what will its EPS be if sales turn out to be 10 percent lower than e..

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