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Q.2: a: Sohar Company is a levered firm generates a contribution margin of its sales was OMR (75) thousand. The company spend OMR (30) thousands
Q.2: a: Sohar Company is a levered firm generates a contribution margin of its sales was OMR (75) thousand. The company spend OMR (30) thousands yearly of the operating fixed costs and paid OMR (10) thousands yearly of an interest. Calculate the degree of total leverage. Q-1. A: Assume that 4 years from now you will need OMR 1,000. Your bank compounds interest at an 8% annual rate. How much must you deposit today to have a balance of OMR 1,000 at year 4? If the interest rate paid each 6 months
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