Differences in financial leverage for these two companies

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Reference no: EM133633556

Case: Based on the latest results from Air Canada and the Royal Bank of Canada, calculate and comment on the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL), and Degree of Combined Leverage (DCL). Be sure to show your work and the numbers used in your
calculations.

Question 1: Which factors can be attributed to the differences in financial leverage for these two companies?

Question 2: How does interest rate adjustments on new debt influence the use of financial leverage?

Reference no: EM133633556

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