question archive La Cucaracha Pest Control, Inc
La Cucaracha Pest Control, Inc
Subject:FinancePrice:2.87 Bought7
La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm's operating leverage is 2.83. The firm’s financial leverage was of 2.49. What is the firm’s degree of combined (total) leverage of La Cucaracha Pest Control, Inc. ?
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Answer:
Combined leverage = operating leverage * finacial leverage
= 2.83 * 2.49
= 7.05
