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1. Tomkaren Amusement Parks, Inc. has a degree of financial leverage of 2.054. The firm also has a Degree of Total Leverage of 7.189. The firm has revenues of $12,000,000 per year, and fixed costs of $3,428,571. What is the firm's operating leverage?

a. .2857

b. 3.50

c. 5.135

d. Cannot be determined with the information provided

e. None of the answers provided is correct

2. A common stock shareholder's rights to a pro rata share of income when additional shares of the same class are offered is referred to the shareholders residual right.

a. True

b. False

Financial Management, Finance

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