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Leverage Sensitivity Exercise Profits from Operations down 40% Total Debt $ 14.00 $ 18.00 $ 22.00 $ 26.00 Total Equity $ 59.00 $ 55.00 $
| Leverage Sensitivity Exercise | ||||
| Profits from Operations down 40% | ||||
| Total Debt | $ 14.00 | $ 18.00 | $ 22.00 | $ 26.00 |
| Total Equity | $ 59.00 | $ 55.00 | $ 51.00 | $ 47.00 |
| Profit From Operations | $ 14.00 | $ 14.00 | $ 14.00 | $ 14.00 |
| Interest Expense (6% of Debt) | ||||
| Net Profit Before Taxes | ||||
| Taxes (40%) | ||||
| Net Profit After Taxes | ||||
| Debt to Equity Ratio | ||||
| Return on Equity | ||||
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Investment The Study Of An Economic Aggregate
Authors: Philip J. Lund
1st Edition
0444851380,1483256901
