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Telecom has 10 million common shares and 1000000 shares of

Telecom Cable has fixed operating cost of $2.6 million, and its variable cost ratio is 0.30. Telecom has $4.0 in bonds outstanding with a coupon interest rate of 12%. Telecom has 1.0 million common shares and 1,000,000 shares of $1.75 preferred stock outstanding. Total revenues for Telecom Cable are $14.2 million. If Telecom has a marginal tax rate of 40%.

a) What is its degree of combined leverage?

b) If sales decreased by $2M show what would happen to EBIT

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Finance Basics: Telecom has 10 million common shares and 1000000 shares of

Reference No:- TGS0598655

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Finance Basics: Telecom has 10 million common shares and 1000000 shares of

Reference No:- TGS0598655

Recent Questions Asked Finance Basics

Q : As a consumer taking charge of your own financial future

Q : What can you do as a law-enforcement officer to ensure that

Q : Write a section of a policies and procedures manual for

Q : What ways do you like to exercise i am flexible in how you

Q : Telecom has 10 million common shares and 1000000 shares of

Q : The expansion plan can be financed with additional

Q : Design a suitable vapour compression refrigeration system

Q : If she invests 30 of her funds in hidalgos and 70 in atrium

Q : How can ordeal mechanisms reduce a particular problem with

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