Surbh Maverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $494,585 and its variable costs equal 60% of sales. The company’s interest expense is $500,000. What is the company’s degree of total leverage (DTL)? Answer to 2 decimal places.

Surbh Maverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $494,585 and its variable costs equal 60% of sales. The company’s interest expense is $500,000. What is the company’s degree of total leverage (DTL)? Answer to 2 decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 11P

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