Firms in japan often employ both high operating and financial leverage because of the use of modern technology and close borrower–lender relationships. assume the mitaka company has a sales volume of 150,000 units at a price of $30 per unit; variable costs are $7 per unit, and fixed costs are $2,050,000. interest expense is $425,000. what is the degree of combined leverage for this japanese firm? (round your answer to 2 decimal places.)

Which statement or statements are implied by equilibrium conditions of the loanable funds market? a firm borrowing in the loanable funds market invests those funds with a higher expected return than any firm that is not borrowing. investment projects which use borrowed funds are guaranteed to be profitable even after paying interest expenses. the quantity of savings is maximized, thus the quantity of investment is maximized. a loan is made at the minimum interest rate of all current borrowing.