Question: Answer Fast Please (No Need for details step just the results) Tala is preparing the financial leverage report to be presented to the board. Given

Answer Fast Please (No Need for details step just the results)

Tala is preparing the financial leverage report to be presented to the board.

Given the below information, assess the leverages to help Tala sending her recommendations to the board.

Q 8,640 units
Price 86 $ per unit
Variable costs = 36 $ per unit
Fixed Costs 86,400 $ per year.
Interest 24,000 $ per year.
EBIT 172,800 $ for the year

Answer 1: The Degree of Operating Leverage (DOL) of the company is

Answer 2: The degree of Financial Leverage (DFL) of the company is

Answer 3: The degree of Combined Leverage (DCL) of the company is

Answer 4: When the sales in the company change 1%, then EBIT will change (%)

Answer 5: When EBIT changes 1% in, Earnings Per Share will change (%)

Answer 6:When sales change 1%, Earnings Per Share will change (%)

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