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 | $400,000 | $456,000 | ||
| Fixed costs | 120,000 | 120,000 | ||
| Variable costs | 100,000 | 114,000 | ||
| Earnings before interest and taxes | $180,000 | $222,000 | ||
| Interest | 20,000 | 20,000 | ||
| Earnings per share (EPS) | $4.80 | $6.06 |
Degree of combined leverage:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Finance For A Better World
Authors: Henri-Claude De Bettignies, F. Lépineux
2009th Edition
0230551300, 978-0230551305
