Problem 2 (18 marks) You have been provided the following income statements for Tiger Industries and SMU DAWG Incorporated. Tiger SMU DAWG Industries Industries 2019 Income Statement ($600) Sales 18,780 1128 Cost of Goods Sold 9,010 5,406 Fixed costs 3,250 1,950 Depreciation 2,450 1,470 Earnings Before Interest and Taxes 4,070 2,442 Interest 3,065 1839 Income Before Taxes 1,005 603 Income Taxes 402 211 Net Income 603 392 Shares als 100 65 a. Calculate the degree of operating leverage for each firm. Show your work (4 marks) b. Calculate the degree of financial leverage for each firm. (4 marks) C. Calculate the degree of combined leverage for each firm. (4 marks) d. If both firms were to experience a 15% increase in sales, what is the percentage change impact in the EPS and what is the new EPS for each firm. (4 marks) e. Which firm is more risky? (2 marks)