Fun" 1U]. LGLLI PIUUULLIUH Pl'dll. 2. How might the proposed nancing method interact with the decision on which production plan is most appropriate? To answer this question, cal~ culate the degree of operating leverage and degree of combined leverage for each production plan, assuming rst that the new project is financed with a mix of 90 percent debt carrying a 15 percent interest rate and 10 percent common stock, and then that it is nanced totally with stock. Discuss how the relationship between the choice of a method of produc- tion and the method of financing affects the degree of combined lever- age