Question
The following is the latest income statement from your company. Compute the degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of
The following is the latest income statement from your company. Compute the degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL).
Sales
$150,000
Variable Costs
-$105,000
Gross Profit
$45,000
Fixed Costs
-$20,000
EBIT
$25,000
Interest
-$15,000
EBT
$10,000
Taxes (40%)
-$4,000
NI
$6,000
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
