Question: 5. Complete the table below: (lpt per row, total 14pts) Var/Fixed 10% increase % change Sales 5,000,000 Operating Leverage Variable Cost (60%) V 3,000,000 Fixed

5. Complete the table below: (lpt per row, total 14pts) Var/Fixed

5. Complete the table below: (lpt per row, total 14pts) Var/Fixed 10% increase % change Sales 5,000,000 Operating Leverage Variable Cost (60%) V 3,000,000 Fixed Cost F 1,000,000 Operating Income (EBIT) Interest F 250,000 Earnings Before Taxes (EBT) Taxes (40%) V Financial Leverage 150,000 Earnings After Taxes (EAT) Preferred Stock F Dividends Earnings available to common stockholders Earnings per share assuming 100,000 shares a. Calculate the following: i. DOL = % Change in EBIT / % Change in Sales = ii. DFL = % Change in Earnings per Share / % Change in EBIT = ii. DCL = % Change in Eamings per Share / % Change in Sales =

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