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PQR Manufacturing Corporation has $2,100,000 in debt outstanding. The company's before-tax cost of debt is 10%. Sales for the year totaled $3,900,000 and variable costs
PQR Manufacturing Corporation has $2,100,000 in debt outstanding. The company's before-tax cost of debt is 10%. Sales for the year totaled $3,900,000 and variable costs were 64% of sales. Net income was equal to $650,000 and the company's tax rate was 30%. If PQR's degree of total leverage is equal to 1.30, what is its degree of operating leverage? Do not round intermediate calculations. a. 0.9100 Ob.1.5398 Oc15940 Od. 1.0602 Oe 1.0976
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