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15. A firm sells their product for $11 and has variable costs of $8 per unit. Their fixed costs are $150,000. They have $1,000,000 in
15. A firm sells their product for $11 and has variable costs of $8 per unit. Their fixed costs are $150,000. They have $1,000,000 in debt at a coupon rate of 6%. What is their Degree of combined leverage if they sell 150,000 units? a. 1.88 b. 2.25 c. 2.66 d. 3.50
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