Good day, please assist with this Financial Management question :

Question 8 [9 Marks]

Conly expects sales of silicon chips to be R30 million this year.

Because this is a very capital-intensive business, fixed operating costs are R10 million.

The variable cost ratio is 40%.

The company's debt obligations consist of a R2 million, 10% bank loan and a R10 million bond issue with a 12% coupon rate.

The company has 100,000 shares of preferred shares outstanding that pays a R9.60 dividend.

Conly has 1 million shares of common shares outstanding, and its marginal tax rate is 40%.

Required:

Calculate the following:

8.1. Degree of operating leverage. (2)

8.2. Degree of financial leverage. (2)

8.3. Degree of combined leverage. (2)

8.4. EPS if sales decline by 5%. (3)