1. Tomkaren Amusement Parks, Inc. has a degree of financial leverage of 2.054. The firm also has a Degree of Total Leverage of 7.189. The firm has revenues of $12,000,000 per year, and fixed costs of $3,428,571. What is the firm's operating leverage?
a. .2857
b. 3.50
c. 5.135
d. Cannot be determined with the information provided
e. None of the answers provided is correct
2. A common stock shareholder's rights to a pro rata share of income when additional shares of the same class are offered is referred to the shareholders residual right.
a. True
b. False