Degree of financial leverage and degree of total leverage

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Reference no: EM13813516

Use the financial information given in the following table to compute the firm’s (a) degree of operating leverage (DOL), (b) degree of financial leverage (DFL), and (c) degree of total leverage (DTL). The firm has no preferred stock.

Sales $64,000

Variable cost ratio 75%

Fixed operating costs $12,000

Times interest earned ratio 5.0x

Reference no: EM13813516

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