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Suppose that you estimated the Degree of Operating Leverage of a firm as 1.9 and the...

Suppose that you estimated the Degree of Operating Leverage of a firm as 1.9 and the Degree of Financial Leverage as 1.9, the Degree of Total Leverage of the firm would be ____.__. Round your answer to 2 decimal places.

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Answer #1

Degree of Total Leverage = Degree of Operating Leverage × Degree of Financial Leverage

Degree of Total Leverage = 1.9 × 1.9

Degree of Total Leverage = 3.61

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