Albatross Airline, Fastron Inc: Computing Leverage and Breakdown Analysis
4) Albatross Airline's fixed operating costs are $5.8 million, and its variable cost interest rate is 0.20. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent. Albatross has $30,000 shares of preferred stock outstanding, which pays a $2 annual dividend. There are 100,000 shares of common stock