Kiwi Airlines has fixed operating costs of $3 million, and its variable costs amount to...
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Kiwi Airlines has fixed operating costs of $3 million, and its variable costs amount to 25 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent. Revenues for the firm are $10 million and the firm is in the 21 percent corporate income tax bracket. What is the firm's degree of operating leverage? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46.
Kiwi Airlines has fixed operating costs of $3 million, and its variable costs amount to 25 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent. Revenues for the firm are $10 million and the firm is in the 21 percent corporate income tax bracket. What is the firm's degree of operating leverage? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46.
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