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7. Illinois Tool Company's (ITC) fixed operating costs are $1,260,000 and its variable cost ratio (G e of sales) is 0.70. The firm's debt consists

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7. Illinois Tool Company's (ITC) fixed operating costs are $1,260,000 and its variable cost ratio (G e of sales) is 0.70. The firm's debt consists of a $6,000,000 bond issue variable costs as a fraction (par value) which pays a coupon rate of 9%. Sales are $9 million per year. What is ITC's degree of financial leverage

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