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Pupkewitz Motors also employs debt financing. If Pupkewitz can borrow at 8%, the interest cost is N$400 billion. What is the degree of financial leverage of Pupkewitz Motors if 6 million cars are produced and sold? Interpret your answer? (4
marks)
Using question 2.2 and 2.3 calculate the degree of total leverage and interpret it. (4
marks)
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