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Suppose that a firm has an Operating Leverage Value of 1.5x and a Financial Leverage Value of 2.5x. a.) What dollar value must fixed costs

Suppose that a firm has an Operating Leverage Value of 1.5x and a Financial Leverage Value of 2.5x.

a.) What dollar value must fixed costs for this firm surpass? b.) What dollar value must debt for this firm surpass? c.) If sales increase by 12%, what is the impact on the firm's EBIT/ d.) If EBIT increases by 5%, what is the impact on the firm's EPS? e.) What is the firm's Combined Leverage value/ f.) If sales increase by 7%, what is the impact on the firm's EPS?

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