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Leverage-DOL, DFL, DCL

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19. A firm has 40,000,000 in revenues, 12,500,000 in fixed costs, 10,250,000 in variable costs, and interest of 2,000,000. Compute:

a) DOL

b) DFL

c) DCL

Please provide response in Excel.

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Solution Summary

Calculates Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL), Degree of Combined Leverage (DCL)

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