Question
3. a. A manufacturing company has the following income statement. Calculate the degree of total leverage (DTL), degree of operating leverage (DOL) and degree of
3. a. A manufacturing company has the following income statement. Calculate the degree of total leverage (DTL), degree of operating leverage (DOL) and degree of financial leverage (DFL). (20 Marks) - 350 Words Answer mandatory
| Income Statement | $ millions |
| Revenues | 1200 |
| Variable costs | 450 |
| Fixed costs | 225 |
| EBIT | 525 |
| Interest | 130 |
| Taxable Income | 395 |
| Tax | 120 |
| Net Income | 275 |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
