A project has fixed costs of $1,500 per year, depreciation charges of $500 a year, annual revenue of $9,000, variable costs equa two-thirds of revenues and the tax rate is 20%. a. If sales increase by 10%, what will be the increase in pretax profits? Increase in pretax profits % b. What is the degree of operating leverage of this project? (Round your answer to 1 decimal place.) Degree of operating leverage times

This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the l…

Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity