What is the company degree of total leverage

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1. Calculate the current price of a $1,000 par value bond that has a coupon rate of 8 percent, pays coupon interest annually, has 13 years remaining to maturity, and has a current yield to maturity (discount rate) of 13 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).

2. Blue Diamond Technologies has sales of $3,000,000. The company's fixed operating costs total of $500.000 and its variable costs equal 45.00% of sales, so the company's current operating income is $700,000. The company's interest expense is $500,000. What is the company's degree of total leverage (DTL)?

Reference no: EM131904323

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