Question
6. Between 2009 and 2010, the Smartbook Printing Company's data showed that its volume of sales increased from $1,583,612 to 1,979,515; its operating income went
6. Between 2009 and 2010, the Smartbook Printing Company's data showed that its volume of sales increased from $1,583,612 to 1,979,515; its operating income went from 712,950 to 995,877; and its earnings per share increased from 1.20 to 1.55. Calculate:
a. (2 pts) The Degree of Operating Leverage
b. (2 pts) The Degree of Financial Leverage
c. ( 2 pts.) The Degree of Combined Leverage
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
