Firms in Japan often employ both high operating and financial leverage because of the use of modern
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Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower–lender relationships. Assume the Mitaka Company has a sales volume of 135,000 units at a price of $30 per unit; variable costs are $9per unit and fixed costs are $1,900,000. Interest expense is $410,000. What is the degree of combined leverage for this Japanese firm?
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Related Book For
Foundations Of Financial Management
ISBN: 9781264097623
18th Edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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