(2) What does this example illustrate concerning the impact of financial leverage on expected rate of return and risk?

(1)    optimal capital structure.

(2)    

(3)    

(4)    

(5)    

(6)    

(7)    

e.     

f.      degree of operating leverage (DOL), degree of financial leverage (DFL), degree of total leverage (DTL)?

g.     

h.     

• Attachment 1
• Attachment 2