Complete each tab using formulas for each answer. I would like the same tutor that I am using for 79302

P13–11
Start with the earnings - the EBIT is 24,600 so you need to subtract the interest and taxes. Interest would be 60,000 x 16% = 9,600 so Net Income Before Tax is 24,600 - 9,600 = 15,000. The tax would be 15,000 x 40% = 6,000 so Net Income is 9,000.
EPS is Net Income - Preferred Dividends so we also need to subtract 7,500 to get 1,500 divided by the number of shares which is 4,000 to get .375
For B, the net income would be 12,600 less the 7,500 dividend to get 5,100 / shares to get 1.275
and for C,the net income would be $35,000.00-9600-10160-7500=7740/4000=1.935
P13-16
a)
Degree of Operating Leverage = Quantity * ( Selling Price - Variable Cost per unit) /  Quantity * ( Selling Price - Variable Cost per unit) - Fixed Operating Cost
Degree of Financial Leverage = EBIT / EBIT - Interest
Degree of Total Leverage = Degree of Operating Leverage * Degree of Financial Leverage
DOLR = [(2 – 1.70)100,000] / [(2 – 1.70)100,000 – 6,000] = 30,000/24,000 = 1.25
DFLR = 24000 / [24000 – 10000] = 1.71
DTLR = 1.25 * 1.71 = 2.14
b)
DOLW = [(2.50 – 1)100,000] / [(2.50 – 1)100,000 – 62,500] = 150,000/ 87,500 =1.71
DFLW = 87,500 / (87,500 – 17,500) = 1.25
DTLW = 1.71 * 1.25 = 2.14
c)
Firm R has less operating (business) risk but its financial risk is more than Firm W.
d)
Two firms with different operating and financial structure may be equally leveraged.
As total leverage is the product of operating and financial leverage, each firm may structure itself differently and still have the same amount of total...