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Unformatted text preview: Text Problem Solutions Formulas: 0BBREAKEVEN AND LEVERAGE ANALYSIS Text Problem Solutions 297 c. Calculate the degree of operating leverage for each year using the assumptions from part a. Use net operating income, instead of EBIT, in the denominator of your calculation. d. Calculate the degree of financial leverage for each year. e. Calculate the degree of combined leverage for each of the three years. Does it appear that Cymers leverage measures have been increasing or decreasing over this period? Worksheet: Formulas: 0BBREAKEVEN AND LEVERAGE ANALYSIS Text Problem Solutions 298 f. Create a Line chart that shows how the various leverage measures have changed over this fiveyear period. 0.00 Dec 07 Dec 06 Dec 05 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Leverage Measures Over Time Degree of Operating Leverage Degree of Financial Leverage Degree of Combined Leverage...
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This note was uploaded on 02/14/2011 for the course FINANCE 615 taught by Professor Green during the Fall '09 term at UMBC.
 Fall '09
 Green
 Finance, Leverage

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