Consider the following sensitivity analysis of EBIT and earnings per share (EPS) where $34,000 is the expected level of EBIT after the acquisition and $20,000 is the recession level of EBIT that might...





  1. Consider the following sensitivity analysis of EBIT and earnings per share (EPS)  where $34,000 is the expected level of EBIT after the acquisition and $20,000 is the recession level of EBIT that might be anticipated. What other information can be interpreted from the chart below?










































































EBIT




DEPS




EEPS



5,000



0.00



0.40



12,500



1.00



1.00



20,000



2.00



1.60



Recession Level EBIT (-22%)



34,000



3.87



2.72



Expected EBIT












Chart Title<br>4.50<br>4.00<br>3.50<br>3.00<br>2.50<br>2.00<br>1.50<br>1.00<br>0.50<br>0.00<br>5,000<br>10,000 15,000<br>20,000<br>25,000<br>30,000<br>35,000<br>40,000<br>DEPS<br>- EEPS<br>

Extracted text: Chart Title 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 DEPS - EEPS

Jun 11, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here