Compute operating and financial and total leverage

Assignment Help Finance Basics
Reference no: EM1363328

Based on fixed costs of $11,520,000, variable costs of $11.25 per unit, production volumes of 4,975,000 units, with an interest expense of $1,326,400, and a selling price of $25.85 per unit, what is the degree of operating leverage, degree of financial leverage, and degree of total leverage?

Reference no: EM1363328

Questions Cloud

Show privatization in managing a fund : Privatization in Managing a Fund - Can privatization play a part in managing/tracking the fund so that the people who actually paid into the system are the ones that are actually receiving the benefit?
Expense results with budget expectations : Identify how operating budgets are developed. Compare five to seven expense results with budget expectations, and describe possible reasons for variance.
What must be done to increase the velocity of a rocket : what must be done to increase the velocity of a rocket.  Calculate the horizontal force that must be applied to produce an acceleration.
Operations - critical path : Why would subcontractors for a government project want their activities on the critical path and under what conditions would they try to avoid being on the critical path?
Compute operating and financial and total leverage : Based on fixed costs of $11,520,000, variable costs of $11.25 per unit, production volumes of 4,975,000 units, with an interest expense of $1,326,400
Compute the changes in consumer surplus-producer surplus : Compute the changes in consumer surplus, producer surplus, government revenue and third party surplus. Also, show these changes on a graph.
Explain and imagine you are consulting with a manager : Explain and Imagine you are consulting with a manager of a business that sells cleaning supplies to nursing homes
Health policies-health determinants and health : Discuss the connection between health policies, health determinants, and health.
Abc system activities-unit-related : Discuss the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity.

Reviews

Write a Review

Finance Basics Questions & Answers

  Values of bonds for given interest rates

What would be the value of this bond if interest rates fall to 5% the day after it is purchased? If interest rates fell to 5% after one year, what would the bond be worth at that point?

  Explain what is the actual rate

Explain what is the actual rate the payday loan business is charging on its loans?

  Find the selling price

The Clearwater Aquarium Corporation will produce 66,000 ten gallon aquariums next year. Variable costs are 40% of sales while fixed costs total $133,200.

  Calculation of ratios

Use the financial statement and additional data, calculate at least five of the following ratios for Alley corporation for 2009.

  Computation of financial and operating levarages

Computation of financial and operating and combined levarages and Fastron has 1 million shares of common stock outstanding

  Before-tax rate domestic bond pay to give after-tax return

If 9% after-tax is investor's required return, what before-tax rate would domestic bond require to pay to give the required after-tax return?

  Correlation of the project cash flows

Corporation planning two potential projects, X and Y. In assessing the projects' risks, the corporation estimated the beta of each project versus both the company's other assets and the stock market,

  Present value help

Basic Buildings Inc. has decided to go public with a $5,000,000 new equity issue. Its investment bankers agreed to take a smaller fee now (6 percent of par value versus 10 percent) in exchange for a 1-year option to purchase an additional 200,000 ..

  Cash flow from operations in a business

Which is most important to the business and why and what are the consequences a company may face if either of these is ignored?

  Determine the stocks expected price

Grullon Corporation is considering a 7-for-3 stock split. The current stock price is $67.50 per share, & company believes that its total market value would increase by 5 percent as a result of the improved liquidity that should follow the split.

  Find the intrinsic value of a common stock

Find the intrinsic value of a common stock that last paid a quarterly dividend of $.03 if there is no expected increament in dividends and your required rate of return is 10 percent.

  Similarities as well as differences between the goal

Similarities as well as Differences between the goal in throughput costing and Activity Based costing

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