18. Firms in Japan often employ both high operating and financial leverage because of the use of...

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18. Firms in Japan often employ both high operating and financial leverage because of the use of modem technology and close borrower-lender relationships. Assume the Susaki Company has a sales volume of 100,000 units at a price of $25 per unit; variable costs are $5 per unit and fixed costs are $ 1,500,000. Interest expense is $250,000. What is the degree of combined leverage for this Japanese firm?

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Foundations Of Financial Management

ISBN: 9780073382388

13th Edition

Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen

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