Google Answers: leverage in business

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Q: leverage in business ( No Answer, 1 Comment )

Question

Subject: leverage in business
Category: Business and Money
Asked by: tee12-ga
List Price: $2.00

Posted: 13 Dec 2005 04:59 PST
Expires: 12 Jan 2006 04:59 PST
Question ID: 605217

Explain thr relationship between earnings per share and the level of ebit

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There is no answer at this time.

Comments

Subject: Re: leverage in business
From: g_dana-ga on 14 Dec 2005 15:00 PST

Earnings per share takes into account net income after taxes and
interst are deducted, and divides that amount by the number of shares
an in-the-money options outstanding. EBIT is earnings before interest
and taxes. If you are highly leveraged your after tax earnings will be
a lot less than before interest and taxes.

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