The following is information for three local auto dealers: a. Using the information given in the above
Question:
a. Using the information given in the above table, construct income statements for each company and the industry average. Assume that each company faces a tax rate of 35%.
b. Calculate the break-even points and the degrees of operating, financial, and combined leverage for each company and the industry average.
c. Compare the companies to each other and the industry average. What conclusions can you draw about each operation?
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Financial Analysis with Microsoft Excel
ISBN: 978-1285432274
7th edition
Authors: Timothy R. Mayes, Todd M. Shank
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