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Solve it please Question #3 Mark: 5 Conceptual Test on Leverage Information of XYZ and ABC firms are given below DCL Break-Even Quantity DOL (for

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Question #3 Mark: 5 Conceptual Test on Leverage Information of XYZ and ABC firms are given below DCL Break-Even Quantity DOL (for a given level of operation) 2.5 3.5 DFL (for a given level of EBIT) 4 2 ABC XYZ 35,000 45,000 ? ? Based on the above information calculate the DCL and then thoroughly discuss the following questions: a. Explain the values of the DOL, DFL and DCL. b. Discuss the strengths and weaknesses of both the firms. Which firm do we think is better and why? C

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