=+e. Calculate the firms degree of total leverage (DTL). f. Profarma has entered into a special contract

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=+e. Calculate the firm’s degree of total leverage (DTL).

f. Profarma has entered into a special contract with the Albanian government to produce and sell an additional 5,500 bottles of the flu medicine in the coming year. Use the DOL, DFL, and DTL to predict and calculate the changes in EBIT and earnings available for common stockholders. Check your work by a simple calculation of Profarma’s EBIT and earnings available for common stockholders, using the basic information given.

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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