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5. If a firm's annual net revenue is $35 mil., its annual variable costs are $21 mil., annual fixed costs are $5 mil., annual
5. If a firm's annual net revenue is $35 mil., its annual variable costs are $21 mil., annual fixed costs are $5 mil., annual interest expense is $1 mil., tax rate 21%. What's the degree of total leverage? Explain the implication of this result in one sentence.
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