Surbh Maverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $494,585 and its variable costs equal 60% of sales. The company’s interest expense is $500,000. What is the company’s degree of total leverage (DTL)? Answer to 2 decimal places.
Surbh Maverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $494,585 and its variable costs equal 60% of sales. The company’s interest expense is $500,000. What is the company’s degree of total leverage (DTL)? Answer to 2 decimal places.
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 11P
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Surbh
Maverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $494,585 and its variable costs equal 60% of sales. The company’s interest expense is $500,000. What is the company’s degree of total leverage (DTL)? Answer to 2 decimal places.
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