La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm's operating leverage is 2.09....
La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm's operating leverage is 2.09. The firm’s financial leverage was of 2.08. What is the firm’s degree of combined (total) leverage of La Cucaracha Pest Control, Inc. ?
Homework Answers
Degree of combined leverage=Operating leverage*Financial leverage
=(2.09*2.08)
which is equal to
=4.3472
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La Cucaracha Pest Control, Inc. is reviewing its financial
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degree of operating leverage and financial leverage
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