1. Discuss the meaning of the general formula to calculate the price of a share of stock.
2. The Degree of Operating Leverage for ABC is 2.11 and sales are $36 million. If sales were to increase next year to $41 million, what would be the expected percentage increase in operating profit? Show your answer in decimal form, because Blackboard can't read the "%" sign. So if your answer is 12.34%, then enter it in decimal form as 0.1234.