Question
Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands except EPS). Round your answer to one decimal
Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands except EPS). Round your answer to one decimal place.
| Year 1 | Year 2 | |||
| Sales | $550,000 | $643,500 | ||
| Fixed costs | 150,000 | 150,000 | ||
| Variable costs | 200,000 | 234,000 | ||
| Earnings before interest and taxes | $200,000 | $259,500 | ||
| Interest | 10,000 | 10,000 | ||
| Earnings per share (EPS) | $3.80 | $4.99 |
Degree of combined leverage:
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
