Current degree of financial leverage-myfirm inc

Assignment Help Finance Basics
Reference no: EM132497879

Myfirm Inc. has Net Sales of $10,000,000, fixed operating costs of $2,000,000 and variable operating costs of $1,000,000. The firm is in the 40% tax bracket and has interest expenses totaling $700,000. The firm also must pay $100,000 in preferred dividends each year. The firm wishes that you determine its current degree of financial leverage.

Reference no: EM132497879

Questions Cloud

Distribute the shares and print prospectuses : Consider a firm in the 40% tax bracket, which just paid a $ .47 dividend to common stockholders. If the firm estimates that the growth rate in dividends
FIN201 Quantitative Applications in Finance Assignment : FIN201 Quantitative Applications in Finance Assignment Help and Solution - Kaplan Business School, Australia. Calculate the monthly rate of returns
What journal would the transactions be recorded : In what journal would the following transactions be recorded? (Assume that a two-column sales journal and a single-column purchases journal are used.)
Compute pio annual incremental after-tax net cash : The investment will increase depreciation by $6,000. Compute Pio's annual incremental after-tax net cash
Current degree of financial leverage-myfirm inc : Myfirm Inc. has Net Sales of $10,000,000, fixed operating costs of $2,000,000 and variable operating costs of $1,000,000. The firm is in the 40% tax
Degree of operating leverage : It also has a degree of financial leverage of 2.6. What is the firm's degree of combined or total leverage if the firm is in the 30% tax bracket.
Determine if cavendish should proceed with the investment : Cavendish Corporation had embarked ,Using the NPV approach, determine if Cavendish should proceed with this investment? Show all of your calculations.
Determine the intercompany profit transaction : Determine the Intercompany Profit Transaction. During 2019, Aramco sold additional goods costing $500 to Petro Rabigh at a 25% mark-up. Petro Rabigh has $260
Prepare entries in journal form to record the transactions : Prepare entries in journal form to record the following transactions which took place during 2021 using first the cost method, and second the par value

Reviews

Write a Review

Finance Basics Questions & Answers

  Comment on the ethics of a salesperson

Comment on the ethics of a salesperson who attempts to talk customers into spending more than they had originally planned and budgeted.

  What is the apr of its nonfree trade credit

If a firm buys under terms of 3/15, net 45 but actually pays on the 20th day and still takes the discount, what is the APR of its nonfree trade credit?

  What is the projects discounted payback period

What is the traditional payback period (PB) of a project that costs $450,000 if it is expected to generate $120,000 per year for five years? If the firms required rate if return is 11 percent, what is the projects discounted payback period (DPB)?

  How does the net present value of the following net cash

how does the net present value of the following net cash flows change with discount rate? what is the internal rate of

  Find two articles that discuss financial ratio analysis

Using the Ashford University Library as a resource, find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis.

  What was percentage appreciation or depreciation of dollar

What was the percentage appreciation or depreciation of the dollar between 1984 and 1987? Between 1987 and 1992? Between 1992 and 1997?

  Future value with different compounding frequency

What is the future value in seven years of $1,000 invested in the account with the stated annual interest rate of 8 percent?

  What is the portfolio beta

You own a stock portfolio invested 35 percent in Stock Q, 20 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.77, 1.15, 1.16, and 1.33, respectively. What is the portfolio beta?

  You have estimated the following probability distributions

You have estimated the following probability distributions of expected future returns for Stocks X and Y.

  Determine the kinds of loans and the interest rates for loan

Should commerical banks be regulated,or should market forces be allowed to determine the kinds of loans and the interest rates for loans and savings deposits?Why?

  What will be the total deposits in long run

The total reserves are $50 million and current reserve requirement is 7% reserve. If the Fed decreases reserve requirements by 1% then what will be the total deposits in long run?

  Maintain a risk-free position

What is the delta of the call option? Based on the delta, how many shares must a trader buy for every 1000 call sold to maintain a risk-free position?

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