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Consider four firms, whose results are summarized in the table below. (Please show the full calculation) A) Which one has the highest Degree of Operating

Consider four firms, whose results are summarized in the table below. (Please show the full calculation)

A) Which one has the highest Degree of Operating Leverage?

B) Which one has the highest Degree of Financial Leverage?

image text in transcribed

Company A 2015 Company B 2015 Company C Company D 2016 2016 2015 2016 2015 2016 | COGS/Sales | 75.5% | 76.2% | 68.5% | 70.6% | 80.2% | 80.2% | 28.6% | 28.6% EBIT Sales Int Expense S7.5mm $8.5mmS3.5mm $4mm $20.5mm $28.4mm $19.7mm $37.5mm $52mm$55.2mm $88.2mm $97.3mm 7 S0 $12mm $0 $0

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