FINANCIAL MODELLING BFIN400

5. The Degree of Operating Leverage for 2019 was: *

a. 1.19

b. 1.31

c. 1

d. $1.31

e. None of the above.

6. The Degree of Financial Leverage for 2020 is: *

a. 1.51

b. 1.19

c. 1.31

d. 1.27

e. None of the above.

7. The Degree of combined Leverage for 2020 is: *

a. 1.51

b. 1.98

c. 1.59

d. 1.38

e. None of the above.

break even unit = 412726

break even in dollar 8254514

target EBIT for 2019 was $27,000,000 and that of 2020 is $30,000,000, then the unit sales needed to reach 2020 target EBIT is 2992261

2019 $18 Year Selling Price per unit Unit Sales Interest Expense Variable Costs per unit Fixed Costs Tax Rate Preferred Dividends Common Shares Outstanding 2020 $20 2,600,000 $1,620,000 $8.37 $4,800.000 20% $3,050,000 9.800,000 2,050,000 $1,350,000 $8.19 $4,800,000 20% $3,050,000 9,800,000