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Sinclair Manufacturing and Boswell Brothers Incorporated are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: Sinclair
Sinclair Manufacturing and Boswell Brothers Incorporated are both involved in the production of brick for the homebuilding industry. Their financial information is as follows:
Sinclair Boswell
Capital Structure
Debt @ $
Common stock, $ per share $
Total $ $
Common shares
Operating Plan:
Sales units at $ each $ $
Variable costs
Fixed costs
Earnings before interest and taxes EBIT $ $
The variable costs for Sinclair are $ per unit compared to $ per unit for Boswell.
If you combine Sinclairs capital structure with Boswells operating plan, what is the degree of combined leverage?
Note: Round your answer to decimal places.
If you combine Boswells capital structure with Sinclairs operating plan, what is the degree of combined leverage?
Note: Round your answer to the nearest whole number.
In part b if sales double, by what percentage will earnings per share EPS increase?
Note: Round your answer to the nearest whole percent.
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