Calculate degree of total leverage from the data

Assignment Help Financial Accounting
Reference no: EM132989269

Question - Hitech expects sales of 20,000 units at 6 per unit in current year while 30,000 in the coming year and must meet the following obligations: variable operating costs of 2.2 per unit, fixed operating costs of 10,000, interest of 22,000, and preferred stock dividends of 13,000. The firm is in the 35% tax bracket and has 5,000 shares of common stock outstanding. Calculate degree of total leverage from the data above.

Reference no: EM132989269

Questions Cloud

How social security benefits are earned : How social security benefits are earned. Describe your findings in your discussion question and discuss whether you agree or disagree with your findings.
What responsibiliy of government during economic crisis : What are the responsibilities of government during economic crises? Use examples from the assigned chapter and/or provide examples from the present day.
Describe overhead and the overhead application process : Describe overhead and the overhead application process. Describe how the over or under application of overhead should be corrected in the accounting records
What type of intervention would support or not support : What did you learn from that experience? If you have not seen any of the interventions, what type of intervention would you support or not support and why?
Calculate degree of total leverage from the data : The firm is in the 35% tax bracket and has 5,000 shares of common stock outstanding. Calculate degree of total leverage from the data above
Difference between transport mode and tunnel mode : What services are provided by IPsec? What is the difference between transport mode and tunnel mode?
What are the important values for successful social worker : What do you think are the most important values for a successful Social Worker? Identify 2-3 values that you think will enable you to be
What is the total premium you receive by selling this call : You are currently holding 100 shares of Apple stock, which you purchased at $135. What is the total premium you receive by selling this call
Royal caribbean international corporate : Required: Land-based operations can be either small or huge depending on the size of the cruise line. However, layers of management are often similar. Please in

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much will vito have at the end of two years

The account pays an interest of 6.75 per cent compounded on a monthly basis. How much will Vito have at the end of 2 years?

  Find what are total assets for jasmine smith

What are total assets? Jasmine retirement account, in which is fully vested, contains $31,500 in mutual funds. She was just insured with a $700,000 term life.

  What is number of shares that should be used in computing

What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2021?

  What price must be set to cover full costs

What price must be set to achieve this goal - what is the price of the combined test assuming marginal cost pricing - What price must be set to cover full cost

  Prepare the entry to close over or underapplied overhead

A company allocates overhead at a rate of 140% of direct labor cost. Actual overhead cost for the current period is $745,000, and direct labor cost is $500,000. Prepare the entry to close over- or underapplied overhead to cost of goods sold

  Analysis of various methods of inventory system and its

analysis of various methods of inventory system and its effect on ending inventory and cost of goods sold.glanville

  Compute the eup for conversion costs is

Using FIFO method, the EUP for conversion costs is? JYD Corporation uses the process costing system. The quality control inspection takes place when the units

  What is the after-tax income if hank sends client the bill

What is the after-tax income if Hank sends his client the bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.)

  How much money will you receive now

If company ABC agrees to pay you a lump sum today discounted at 15% to purchase those five future payments from you, how much money will you receive now

  Find a credit recommendation for kent bank

Find and Explain why the cash budget is more important to a bank than the accounting net income when determining a credit decision.

  Prepare the adjusting entries for the month

ACC 557 - Determine the October 31 balance for each of the accounts above, and prepare a trial balance at October 31, 2015

  What is the company net income for moore corporation

What is the company's net income? What is its net cash flow? The company's depreciation expense is $200,000. Moore is 100% equity financed

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd