What is its degree of operating leverage

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1. Pelican Corporation took out a nine-month $200,000 discount interest loan with a 14 percent quoted (simple) interest rate. What is the annual percentage (APR) interest rate for the loan? (answer no percentage, whole number with two decimal points)?

2. Identify the different types of strategies used in cost analysis/restaurant industry. Explain how these strategies add value to the decision making process for specific clientele base of business that purchase products or services.

3. The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS. If a 15percent increase in sales causes EPS to increase from $5.00 to $7.00, and if the firm uses no debt, then what is its degree of operating leverage ?

Reference no: EM132050696

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