Table T-11.12

Financial Leverage with sales=34,000 and FC=26,500
Debt/Total Assets 0.2 0.3 0.4 0.5 0.6 0.7 0.8
Debt 4,800 7,200 9,600 12,000 14,400 16,800 19,200
Equity 19,200 16,800 14,400 12,000 9,600 7,200 4,800
Total Assets 24,000 24,000 24,000 24,000 24,000 24,000 24,000
# shares 960 840 720 600 480 360 240
Sales 34,000 34,000 34,000 34,000 34,000 34,000 34,000
COGS 8,500 8,500 8,500 8,500 8,500 8,500 8,500
Gross Profit 25,500 25,500 25,500 25,500 25,500 25,500 25,500
Expenses 26,500 26,500 26,500 26,500 26,500 26,500 26,500
EBIT -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000
Interest 384 576 768 960 1152 1344 1536
PBT -1,384 -1,576 -1,768 -1,960 -2,152 -2,344 -2,536
Tax -554 -630 -707 -784 -861 -938 -1014
PAT -830 -946 -1,061 -1,176 -1,291 -1,406 -1,522
EPS -0.86 -1.13 -1.47 -1.96 -2.69 -3.91 -6.34
I% 0.08 0.08 0.08 0.08 0.08 0.08 0.08
ROE -0.04 -0.06 -0.07 -0.1 -0.13 -0.2 -0.32
ROA -0.03 -0.04 -0.04 -0.05 -0.05 -0.06 -0.06
DFL 0.72 0.63 0.57 0.51 0.46 0.43 0.39
FLI 1.33 1.5 1.75 2 2.6 3.33 5.33
WACC 0.04 -0.03 -0.03 -0.03 -0.03 -0.03 -0.04