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0 19. Glynn Enterprises and Monroe, Inc., both produce fluid control products. Their financial information is as follows: Capital Structure Glynn Monroe Debt @ 10%
0 19. Glynn Enterprises and Monroe, Inc., both produce fluid control products. Their financial information is as follows: Capital Structure Glynn Monroe Debt @ 10% $1,500,000 Common stock, $10 per share 500,000 $2,000,000 $2,000,000 $2,000,000 Common shares 50,000 200,000 Operating Plan Sales (200,000 units at $5 each) $1,000,000 $1,000,000 Less: Variable costs 600,000 200,000 (53 per unit) ($1 per unit) Fixed costs. 400,000 Earnings before interest and taxes (EBIT) $ 400,000 $ 400,000 a. If you combine Glynn's capital structure with Monroe's operating plan, what is the degree of combined leverage? b. If you combine Monroe's capital structure with Glynn's operating plan, what is the degree of combined leverage? C. Explain why you got the results you did in parts a and b. d. In part b, if sales double, by what percent will'EPS increase
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