Albatross Airline’s fixed operating costs are $5 million, and its variable cost ratio is 0.30. The...

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Albatross Airline’s fixed operating costs are $5 million, andits variable cost ratio is 0.30. The firm has $1.3 million in bondsoutstanding with a coupon interest rate of 7 percent. Albatross has25,000 shares of preferred stock outstanding, which pays a $3annual dividend. There are 70,000 shares of common stockoutstanding. Revenues for the firm are $8 million, and the firm isin the 40 percent corporate income tax bracket. Compute thefollowing for the firm. Round your answers to two decimalplaces.
Degree of operating leverage:
Degree of financial leverage:
Degree of combined leverage:
Interpret this value for DCL. A 1% change in_ will resultin a % change in __________
Enter the word sales, ebit, or EPS in the first and lastblanks.Round to two decimal places for the change

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Albatross Airline’s fixed operating costs are $5 million, andits variable cost ratio is 0.30. The firm has $1.3 million in bondsoutstanding with a coupon interest rate of 7 percent. Albatross has25,000 shares of preferred stock outstanding, which pays a $3annual dividend. There are 70,000 shares of common stockoutstanding. Revenues for the firm are $8 million, and the firm isin the 40 percent corporate income tax bracket. Compute thefollowing for the firm. Round your answers to two decimalplaces.Degree of operating leverage: Degree of financial leverage: Degree of combined leverage: Interpret this value for DCL. A 1% change in_______ will resultin a ________% change in ________________Enter the word sales, ebit, or EPS in the first and lastblanks.Round to two decimal places for the change