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08 : Sali most recently sold 60000 units ( JD540000 sales revenue ) it is variable cperating costs are JD300000 and its fixed operating cost
08 : Sali most recently sold 60000 units ( JD540000 sales revenue ) it is variable cperating costs are JD300000 and its fixed operating cost are JD10000 . Annual interest charges total JD 15000 and the firm has 3000 shares of JD4 preferred stock outstanding . It currently has 20000 shares of common stock outstanding . Assume thar the firm has a 40 % tax rate . At whar level of sales would the firm break even on operations ? Calculate the firm's degree of total leverage ( DTI ) .
08: Sali most recently sold 60000 units (JD540000 sales revenue) it is variable cperating costs are JD300000 and its fixed operating cost are JD10000. Annual interest charges total JD 15000 and the firm has 3000 shares of JD4 preferred stock outstanding. It currently has 20000 shares of common stock outstanding. Assume that the firm has a 40% tax rate. At whar level of sales would the firm break even on operations? Calculate the firm's degree of total leverage (DTI)Step by Step Solution
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