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Please fill out excel sheet and show excel formulas for answers Silver Polygon, Inc., has determined that if its revenues were to increase by 10
Please fill out excel sheet and show excel formulas for answers
Silver Polygon, Inc., has determined that if its revenues were to increase by 10 percent, then EBIT would increase by 25 percent to $100,000. The fixed costs (cash only) for the firm are $100,000. Given the same 10 percent increase in revenues, what would be the corresponding change in EBITDA? Hint: Using the information above, compute the Accounting DOL for the firm. You can then use the formula for the Accounting DOL to solve for Depreciation and Amortization. At this point, you will have the information necessary to calculate the Cash Flow DOL and the question can be answered. Silver Polygon, Inc., has determined that if its revenues were to increase by 10 percent, then EBIT would increase by 25 percent to $100,000. The fixed costs (cash only) for the firm are $100,000. Given the same 10 percent increase in revenues, what would be the corresponding change in EBITDA? Hint: Using the information above, compute the Accounting DOL for the firm. You can then use the formula for the Accounting DOL to solve for Depreciation and Amortization. At this point, you will have the information necessary to calculate the Cash Flow DOL and the question can be answeredStep by Step Solution
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