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7. The computation and interpretation of the degree of combinedleverage (DCL) You and your colleague, Ian, are currently participating in a finance internship program at

image text in transcribed 7. The computation and interpretation of the degree of combinedleverage (DCL) You and your colleague, Ian, are currently participating in a finance internship program at Tucker Manufacturing. Your current assignment is to work together to review Tucker's current and projected income statements. You will also assess the consequences of management's capital structure and investment decisions on the firm's future riskiness. After much discussion, you and Ian decide to calculate Tucker's degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL) based on this year's data to gain insights into Tucker's risk levels. The most recent income statement for Tucker Manufacturing follows. Tucker is funded solely with debt capital and common equity, and it has 2,000,000 shares of common stock currently outstanding. Given this information, complete the following table and then answer the questions that follow. When performing your calculations, round your EPS and percentage change values to two decimal places. Everything else remaining constant, assume Tucker Manufacturing decides to sell 520,000 shares of preferred stock that would pay $4 per share per year in cash dividends. How would this affect Tucker's DOL, DFL, and DCL? - The DOL would be expected to - The DFL would be expected to - The DTL would be expected to

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