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Chapter - 14: Financial and Operating Leverage
Chapter - 14: Financial and Operating Leverage
The tax rate is 50 per 8. EPS = (EBIT – INT) (1 – T)/N 1.20 1.65
Neutral ROI = i
n
E (EPS) EPS1 P1 EPS 2 P2 EPS j Pj EPS P
j 1
j j