Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maverick Technologies has sales of $ 3 , 0 0 0 , 0 0 0 . The company s fixed operating costs total $ 5

Maverick Technologies has sales of $3,000,000. The companys fixed operating costs total $500,000 and its variable costs equal 60% of sales, so the companys current operating income is $700,000. The companys interest expense is $553,201. What is the companys degree of financial leverage (DFL)? Answer to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis

Authors: K. R. Subramanyam, John Wild

11th edition

78110963, 978-0078110962

More Books

Students also viewed these Accounting questions

Question

What is the brands position in the marketplace at the present time?

Answered: 1 week ago

Question

Explain the regulation of the secretions of the small intestine.

Answered: 1 week ago