1. Business
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  3. b the degree of operating leverage before and after expansion...

Question: b the degree of operating leverage before and after expansion...

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b. The degree of operating leverage before and after expansion. Assume sales of $6.6 million before expansion and $7.6 million after expansion. Use the formula: DOL (S- TVC)/ (S TVC - FC). (Round your answers to 2 decimal places.) Degree of Operating Leverage Delore expansion After expansion 2.46 281 C-1. The degree of financial leverage before expansion. (Round your answers to 2 decimal places.) Degree of tinancinl levernge163 c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $7.6 million for this question. Round your answers to 2 decimal places.) Degree of Financial Leverage 100% Debt 100% Equity 50% Debt & 50% Fquity

d. Compute EPS under all three methods of financing the expansion at $7.6 million in sales (first year) and $10.5 million in sales (last year). (Round your answers to 2 decimal places.) Earnings per Share First Year Last Year 100% Debt 100% Equity 50% Debt & 50% Equity

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