Self-Assessment HW7C (Total (Combined) leverage)
Question 1
La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm's operating
leverage is 2.60. The firm’s financial leverage was of 2.10. What is the firm’s degree of
combined (total) leverage of La Cucaracha Pest Control, Inc.?
Your Answer:
Question 1 options:
Answer
Hide Check my answer
DCL = DOL * DFL = 2.6 *2.1 = 5.46
Question 2
Haunted Forest, Inc.is selling fog machines.
Use the following information about Haunted Forest, Inc. to answer the following questions.
Average selling price per unit $332.
Variable cost per unit $212
Units sold 362
Fixed costs $16,664
Interest expense $3,250
Based on the data above, what is the degree of total (combined) leverage of Haunted Forest,
Inc.?
Round the answer to two decimals
Your Answer:
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 09:08:02 GMT -05:00
https://www.coursehero.com/file/14574289/HWK-7C-total-combined-leverage/
Question 1
La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm's operating
leverage is 2.60. The firm’s financial leverage was of 2.10. What is the firm’s degree of
combined (total) leverage of La Cucaracha Pest Control, Inc.?
Your Answer:
Question 1 options:
Answer
Hide Check my answer
DCL = DOL * DFL = 2.6 *2.1 = 5.46
Question 2
Haunted Forest, Inc.is selling fog machines.
Use the following information about Haunted Forest, Inc. to answer the following questions.
Average selling price per unit $332.
Variable cost per unit $212
Units sold 362
Fixed costs $16,664
Interest expense $3,250
Based on the data above, what is the degree of total (combined) leverage of Haunted Forest,
Inc.?
Round the answer to two decimals
Your Answer:
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 09:08:02 GMT -05:00
https://www.coursehero.com/file/14574289/HWK-7C-total-combined-leverage/
