Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower lender relationships Assume the Company has a sales volume of
Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower lender relationships. Assume the Company has a sales volume of 143,000 units a price of $28 per unit; variable costs are $5 per unit and fixed costs are $1,980,000. Interest expense is $418,000. What is the DCL for this Japanese firm?
Apr 06 2020 View more View Less
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