Question: Given Sales = $25 mil., VCs = 18 mil., FCs = 4 mil., Interest expense = 1.5 mil., tax rate = 21%. What's the degree

Given Sales = $25 mil., VCs = 18 mil., FCs = 4 mil., Interest expense = 1.5 mil., tax rate = 21%. What's the degree of combined leverage? Explain what this number means.

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To calculate the degree of combined leverage DCL we need to determine the degree of operating leverage DOL and the degree of financial leverage DFL Th... View full answer

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