7. The Beverages, Inc., sells 200,000 bottles a year. Each bottle produced has a variable...

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7. The Beverages, Inc., sells 200,000 bottles a year. Each bottle produced has a variable cost of $10 and sells for $15 each. Regardless of the production, the fixed operating costs are $300,000. The company has current interest charges of $200,000 on its bonds, and preferred stock dividends amount to $200,000. The corporate tax rate is 4 of common shares outstanding is 0%. The number 2,000,000. What is the degree of operating, financial and total leverage? 9 points)

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