Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands exceptEPS) 2004 2005 Sales Fixed costs Variable costs $500 000 $570,000 20,000 20,000 300,000 342 000 Earnings before interest and taxes 80,000 08,000 0,000 30 000 Interest Earning...

Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands

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Given the following information for Computech, compute the firm€™s degree of combined leverage (dollars are in thousands exceptEPS):

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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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Question Posted: Jul 17, 2012 03:30 AM

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Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands

Question:

2004 2005 Sales Fixed costs Variable costs $500.000 $570,000 20,000 20,000 300,000 342.000 Earnings before interest and taxes 80,000 08,000 0,000 30.000 Interest Earnings per share (EPS) $ 1.00 1.56

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