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Business, 26.11.2019 05:31 KetaFord1978

You and your coleague, lan, are your current assignment is to work together to review tucker's current and projected income stat currently participating in a finance internship program at tucker manufacturing ements. you will also assess the consequences riskiness. after much discussion, you and lan decide to calculate tucker's degree of operating leverage of financial leverage (dfl), and degree of combined leverage (dcl) based on this year's data to gain insigna of management's capital structure and investment decisions on the firm's future (dol), degree tucker's risk levels. the most recent income statement for tucker manufacturing follows. tucker is funded solely with debt capital a common equity, and it has 2,000,000 shares of common stock currently outstanding next year's sales less: variable costs gross profit less: fixed operating costs net operating income (ebit) less: interest expense taxable income (ebt) less: tax expense (40%) net income earnings per share (eps) this year's data $60,000,000 36,000,000 24,000,000 12,000,000 12,000,000 1,200,000 10,800,000 4,320,000 $6,480,000 $3.24 projected data $64,500,000 38,700,000 25,800,000 12,000,000 13,800,000 1,200,000 12,600,000 5,040,000 $7,560,000 $3.78 e and then answer the questions that follow. when performing your calculations, round your eps and percentage change values to two decimal places. tucker manufacturing data dol (sales = $60,000,000) dfl (ebit -$12,000,000) dcl (sales $60,000,000) everything else remaining constant, manufacturing ran tecl y for the changes made to tucker's plant and equipment changes. assume tucker manufacturing decides to convert its labor-intensive tal-intensive facility by laying or over 75% of its labor force and replacing the manufacturing equipment. assume that, over the next five years, the wages saved as a result of the layoffs will how would this affect tucker's dol, dfl, and dcl? the dol would be expected to the dfl would be expected to the dcl would be expected to

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