22 PQR Manufacturing Corporation has $2,500,000 in debt outstanding. The company's before-tax cost of debt...
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22 PQR Manufacturing Corporation has $2,500,000 in debt outstanding. The company's before-tax cost of debt is 10%. Sales for the year totaled $4,200,000 and variable costs were 52% of sales. Net income was equal to $790,000 and the company's tax rate was 30%. If PQR's degree of total leverage is equal to 1.30, what is its degree of operating leverage? Do not round intermediate calculations. a. 1.5358 b. 1.5880 c. 1.0642 d. 0.9100 e. 1.1004.
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