Example Problems

Example Problems -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
“Nothing this world has to offer can surpass the joy of living the  gospel! No worldly wealth or possession, no degree of fame or  recognition can supplant the satisfaction of feeling the warmth and  peace of the Spirit of the Lord in our hearts and in our homes. ‘Sweet  is the peace the gospel brings.’” Combined Leverage:   by using  operating leverage  and  financial leverage , a small change in sales  is  magnified into a larger change in earnings per   share . This  “multiplier effect”  is called the degree of  combined leverage (DCL). If we have the data, we can use this formula: Example #1: DCL = 3 1% increase in sales  will result in a  3%   increase in earnings per share (EPS) . Example #2: DCL = 4 1% increase in sales  will result in a  4%   increase in earnings per share (EPS) . A firm has a degree of combined leverage of 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/21/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

Page1 / 3

Example Problems -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online