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Given the following information for Computech, compute the firm's degree of combined leverage (dollars are in thousands except EPS):

 

2004

2005

Sales

$500,000

$570,000

Fixed costs

120,000

120,000

Variable costs

300,000

342,000

Earnings before interest and taxes

80,000

108,000

Interest

30,000

30,000

Earnings per share(EPS)

$1.00

$1.56

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92090506

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