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Problem 2: Bob Co has sales equals to 400,000 in which 35% of them are variable costs, ita EBIT equals to 230.000 and 40% tax

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Problem 2: Bob Co has sales equals to 400,000 in which 35% of them are variable costs, ita EBIT equals to 230.000 and 40% tax rate. In addition, it pays 40% of its Net Income as preferred dividends Bob Co has $200,000 of loans with 12% interest rate 1- Bob Co. has EBT equal to: O a) $202,400 Ob) $230,000 $206,000 d) $30,000 e) None of the above 2- Bob Co. has DOL equal to: * O a) 1.13 b) 113% 0 ) 13% O d) 11.3 e) None of thillimabove 3- Bob Co. has DFL equal to: O a) 1.86 O b) 88% O c) 18.6% O d) 0.88 O e) None of the above 4- Bob Co. has DCL equal to: O a) 0.99 b) 2.1% O c)2.1 O d) 99% e) None of the above

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