5. Aptar has annual sales of $5 million, fixed costs of $1 million, a variable cost...
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5. Aptar has annual sales of $5 million, fixed costs of $1 million, a variable cost rate of 60%, full capital of $4 million, a debt ratio of 40% and an average interest rate on debt of 15%. Please answer: • What is the operating leverage factor, the financial leverage factor and the joint leverage factor. • If Aptar's sales are estimated to increase by 10% over the forecast period, what is the growth in EBITDA and earnings per share. 5. Aptar has annual sales of $5 million, fixed costs of $1 million, a variable cost rate of 60%, full capital of $4 million, a debt ratio of 40% and an average interest rate on debt of 15%. Please answer: • What is the operating leverage factor, the financial leverage factor and the joint leverage factor. • If Aptar's sales are estimated to increase by 10% over the forecast period, what is the growth in EBITDA and earnings per share.
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Answer rating: 100% (QA)
The operating leverage factor is the ratio of total contribution margin to EBITDA which is calculated by dividing the total contribution margin by EBI... View the full answer
Related Book For
Economics Principles and Policy
ISBN: 978-0538453653
12th edition
Authors: William J. Baumol, Alan S. Blinder
Posted Date:
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