Computation of eps, Computation of EPS and I want to

Computation of eps

Assignment Help Finance Basics

Reference no: EM1310267

Computation of EPS

The company expects sales if silicon chips to be$60 million this year Because this is a very capital intensive business fixed operating cost are$20 million the variable cost ratio is 40% the firm's debt obligations consist of a$4 million 10% bank loan and a$2 million bond issue with a 11 % coupon rate. The company has 1 million shares of common stock outstanding and its marginal tax rate is 40%. I need to compute the degree if operating leverage and financial leverage and the combined leverage. Compute EPS if sales is declined by 5%.

Reference no: EM1310267

Questions Cloud

Journal entries for fund and government financial statement : Provide all required journal entries for fund and government-wide financial statements. What information do the government-wide financial statements present? What information do the fund out financial statements present?

Computing present value of stock by retention rate on equity : Retention rate and experience the return on equity of 14%. The required rate of return for investor is 12.5%. Compute the present value of the stock is?

How much does the firm currently earn per share : How much does the firm currently earn per share and What proportion of the firm does Warren currently own and What proportion of the firm will Warren own after the stock dividend?

What is the lumberjack''s speed relative to shore : An astronaut on a small planet wishes to measure the local value of g by timing pulses travelling down a wire which has a large object suspended from it. Imagine the wire of mass 3.80 g is 1.60 m long and has a 3.00-kg object suspended from it. A pul..

Computation of eps : Computation of EPS and I want to compute the degree if operating leverage and financial leverage and the combined leverage

Make a capital structure decision : What important factors, in addition to quantitative factors, should a firm consider when it is making a capital structure decision? How do these factors play in the decision?

Explain what atoms on mars must be composed of : A 2.00 syringe has an inner diameter of 5.00, a needle inner diameter of 0.270, and a plunger pad diameter (where you place your finger) of 1.20. A nurse uses the syringe to inject medicine into a patient whose blood pressure is 140/100. Suppose the ..

Objective questions on quality management : Objectiv and multiple choice questions on marketing research.

What is the emf induced in coil : Use this technique to find formula for the intensity of a sound, in terms of sound level and the reference intensity. There will be a quantity involved in the calculations. When you enter your answer, leave off the unit.

User Account

All Pages