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Do not use excel. show calculations please. The following table summarizes the percentage changes in operating income, percentage changes in revenue, and betas for four
Do not use excel. show calculations please.
The following table summarizes the percentage changes in operating income, percentage changes in revenue, and betas for four pharmaceutical firms. Firm PharmaCorp SynerCorp BioMed Safemed % Change in Revenue 27 25 23 21 % Change in Operating Income Beta 25 1.00 32 1.15 36 1.30 40 1.40 a. Calculate the degree of operating leverage for each of these firms. b. Use the operating leverage to explain why these firms have different betasStep by Step Solution
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