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Defining leverage
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What does a leverage of 1.81 say: a- $1.81 of assets is funded with $1.00 of debt and $0.81 of equity b- Assets are funded with 81% equity. c- $1.81 of assets is funded with $1.00 of equity and $0.81 of debt d- Assets are funded with 81% debt
Degree of leverage
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From the following income statement, calculate: (a) Degree of financial leverage. (b) Degree of operating leverage. (c) Degree of combined leverage. Income statement Sales $440,000 TVC 240,000 Fixed cost 96,000 View more questions Search
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