Question
Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume the Mitaka
Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume the Mitaka Company has a sales volume of 139,000 units at a price of $29 per unit; variable costs are $7 per unit and fixed costs are $1,940,000. Interest expense is $414,000.
What is the DCL for this Japanese firm?
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
