TABLE 5–4 Abbreviated Income Statement The Van Accessible Corp All figures in $thousands except Earnings Per Share 31-Dec-13 31-Dec-12 Total revenue Cost of Revenue Gross Profit 1,789,654 478,963 1,310,691 65,987 1,244,704 544,444 700,260 703,904 275,963 427,941 57,896 370,045 289,635 80,410 1.61 Operating Expenses Operating Income Interest and Taxes Net Income Earnings Per Share 50,000,000 Shares outstanding 14.01 DOL = 1.5324 DFL = 3.2613 DCL = 5.00
TABLE 5–4 Abbreviated Income Statement The Van Accessible Corp All figures in $thousands except Earnings Per Share 31-Dec-13 31-Dec-12 Total revenue Cost of Revenue Gross Profit 1,789,654 478,963 1,310,691 65,987 1,244,704 544,444 700,260 703,904 275,963 427,941 57,896 370,045 289,635 80,410 1.61 Operating Expenses Operating Income Interest and Taxes Net Income Earnings Per Share 50,000,000 Shares outstanding 14.01 DOL = 1.5324 DFL = 3.2613 DCL = 5.00
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
Related questions
Question
Using the Van Accessible data from Table 5–4:
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 DOL, DFL, and DCL mean.
Transcribed Image Text:TABLE 5–4 Abbreviated Income Statement The Van Accessible Corp
All figures in $thousands except Earnings Per Share
31-Dec-13
31-Dec-12
Total revenue
Cost of Revenue
Gross Profit
1,789,654
478,963
1,310,691
65,987
1,244,704
544,444
700,260
703,904
275,963
427,941
57,896
370,045
289,635
80,410
1.61
Operating Expenses
Operating Income
Interest and Taxes
Net Income
Earnings Per Share 50,000,000 Shares outstanding
14.01
DOL = 1.5324
DFL = 3.2613
DCL = 5.00
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