Question: Using the Van Accessible data from table 5-4: Table 5-4 Abreviated Income Statement The Van Accessible Corp all figures in $thousands except Earnings Per Share
Using the Van Accessible data from table 5-4:
| Table 5-4 Abreviated Income Statement The Van Accessible Corp | ||||
| all figures in $thousands except Earnings Per Share | ||||
| 31-Dec-13 | 31-Dec-12 | |||
| Total revenue | 1,789,654 | 703,904 | ||
| Cost of Revenue | 478,963 | 275,963 | ||
| Gross Profit | 1,310,691 | 427,941 | ||
| Operating Expenses | 65,987 | 57,896 | ||
| Operating Income | 1,244,704 | 370,045 | ||
| Interest and Taxes | 544,444 | 289,635 | ||
| Net Income | 700,260 | 80,410 | ||
| Earnings Per Share 50,000,000 Shares outstanding | 14.01 | 1.61 | ||
| a. calculate the degree of operating leverage(DOL) b. calculate the degree of financial leverage(DFL) c. Calculate the degree of combined leverage(DCL) d. Explain what the DOL, DFL, and DCL mean |
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