Question: Problem 6 continued Calculate each below using the information from problem 6 Degree of Operating Leverage=% Change in EBIT % Change in Sales a. b.

Problem 6 continued Calculate each below using the information from problem

Problem 6 continued Calculate each below using the information from problem 6 Degree of Operating Leverage=% Change in EBIT % Change in Sales a. b. Degree offinancial Leverage % Change in EPS % Change in EBIT Degree of Combined Leverage-% Change in EPS c. % Change in Sales What is leverage? 5. Does leverage increase or decrease the risk of a company

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