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Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands except EPS). Round your answer to two decimal
Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands except EPS). Round your answer to two decimal places.
| Year 1 | Year 2 | |||
| Sales | $500,000 | $570,000 | ||
| Fixed costs | 110,000 | 110,000 | ||
| Variable costs | 200,000 | 228,000 | ||
| Earnings before interest and taxes | $190,000 | $232,000 | ||
| Interest | 50,000 | 50,000 | ||
| Earnings per share (EPS) | $4.38 |
$5.89
|
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Financial Valuation Of Employee Stock Ownership Plan Shares
Authors: Larry R. Cook
1st Edition
0471678473, 978-0471678472
