Homework #7B (Financial leverage)

Question 2 (1 point)

Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,382,180. The firm’s interest expense was $2,142,770.

What will be the resulting percentage change in earnings per share if they expect operating profit to change -3.4 percent? 

(You should calculate the degree of financial leverage first).

(Write the percentage sign in the "units" box).

Round the answer to two decimals