Bulldogs Inc. forecasted the following data for 2022. · Forecasted unit sales is 20,000. · The selling price of the units is P25. · Contribution Margin ratio is 40%. · Earnings before interest and taxes at P110,000. · The P200,000 total debt of the company requires annual of interest at 10%. What is the degree of combined leverage?
Bulldogs Inc. forecasted the following data for 2022. · Forecasted unit sales is 20,000. · The selling price of the units is P25. · Contribution Margin ratio is 40%. · Earnings before interest and taxes at P110,000. · The P200,000 total debt of the company requires annual of interest at 10%. What is the degree of combined leverage?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Bulldogs Inc.
· Forecasted unit sales is 20,000.
· The selling price of the units is P25.
· Contribution Margin ratio is 40%.
· Earnings before interest and taxes at P110,000.
· The P200,000 total debt of the company requires annual of interest at 10%.
What is the degree of combined leverage?
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