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The following is the income statement for Syarikat Cinta Kaseh Bhd. Sales of RM 100,000 Variable Cost (62,000) Fixed Cost (15,000) EBIT 23,000 Interest Payment
The following is the income statement for Syarikat Cinta Kaseh Bhd. Sales of RM 100,000 Variable Cost (62,000) Fixed Cost (15,000) EBIT 23,000 Interest Payment (8,000) EBT 15,000 Tax 6,000 Net Income 9,000 i. Calculate the degree of operating leverage (DOL)? (2 marks) ii. What is the degree of financial leverage (DFL)? (2 marks) iii. Calculate the degree of mixed leverage (DCL)? (2 marks) iv. What will happen to earnings per share if sales drop by 15%? (2 marks) v. What is the break -even point in sales dollars?
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
