12. The firm X has sales this year of `1,000 and variable costs account for 10% of...

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12. The firm X has sales this year of `1,000 and variable costs account for 10% of revenues.

It has fixed costs of `600, interests expense of `100 and a tax rate of 40%. The company currently has 100 shares outstanding. What is the EPS, DOL, DFL and DCL for alternative plans:

(i) The company is unlevered and does not pay interests, (ii) the company is levered.

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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Question Posted: Jul 24, 2024 03:04 AM

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12. The firm X has sales this year of `1,000 and variable costs account for 10% of...

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Financial Management

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