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Sinclair Manufacturing and Boswell Brothers Inc., are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: The
Sinclair Manufacturing and Boswell Brothers Inc., are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: The variable costs for Sinclair are $10 per unit compared to $12 per unit for Boswell. a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the degree of combined leverage? (Round your answer to 2 decimal places.) b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the degree of combined leverage? (Round your answer to 2 decimal places.) c. In part b, if sales double, by what percentage will earnings per share (FPS) increase? (Round your answer to the nearest whole percent.) Sinclair Manufacturing and Boswell Brothers Inc., are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: The variable costs for Sinclair are $10 per unit compared to $12 per unit for Boswell. a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the degree of combined leverage? (Round your answer to 2 decimal places.) b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the degree of combined leverage? (Round your answer to 2 decimal places.) c. In part b, if sales double, by what percentage will earnings per share (FPS) increase? (Round your answer to the nearest whole percent.)
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