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35) ABC Company currently sells 40,000 units of product X each year. Each unit costs P168 to produce and sells for P200. Fixed costs are

35) ABC Company currently sells 40,000 units of product X each year. Each unit costs P168 to produce and sells for P200. Fixed costs are P600,000 per year. The firm has annual interest expense of P120,000 preferred stock dividends of P42,000 per year, and a 30% tax rate. The degree of TOTAL leverage for LDM Company is [round off to 2 decimal places]

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