Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Play-More Toys produces inflatable beach balls, selling $450,000 balls per year. Each ball produced has a variable operating cost of $0.86 and sells for $1.08. Fixed operating costs are $34,000. The firm has annual interest charges of $ 5,600, preferred dividends of $1,500, and a 40% tax rate.
a. Calculate the operating breakeven point in units.
b. Use the degree of operating leverage (DOL) formula to calculate DOL.
c. Use the degree of financial leverage (DFL) formula to calculate DFL.
d. Use the degree of total leverage (DTL) formula to calculate DTL. Compare this to the product of DOL and DFL calculated in parts (b ) and (c ).
Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurence announces a 2-for-l split. Immediately after the split, how many shares will you have, what will the ad..
Should a company hedge its foreign exchange exposure? Explain reasons for and against hedging.
Which one of the statements about margin requirements on option positions is not correct?
A noncallable Treasury bond has a quoted yield of 5.23 percent. It has a 6.2 percent coupon and 14 years to maturity. a. What is its dollar price assuming a $1,000 par value? (Round your answer to 2 decimal places. Omit the "$" sign in your response...
A GPS company created a $2 million warranty reserve fund for the GPS chip. Assuming an ordinary free replacement warranty,
what personal tax rate would make the investors equally willing to receive the dividend or to let Carlson invest the money?
The KatyDid Co. is paying a $1.25 per share dividend today. There are 120,000 shares outstanding with par value of $1.00 per share. As result of this divided.
The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value bonds with a 15-year maturity at a price of $947 that carry a coupon interest rate of 12.7 percent that is..
Which one of the following indicates a project should be accepted?
The president of Real Time Ltd has asked you to evaluate the proposed acquisition of a new computer system. The system's price is $39,000, and will be depreciated straight-line over a three year life. Purchase of the system would require an increase ..
Even though most corporate bonds in the United States make coupon payments semiannually, what is the current price of the bond?
Silas 4-Wheeler, Inc., has an ROE of 17.47 percent, equity multiplier of 1.40, and a profit margin of 16.00 percent. What is the total asset turnover and the capital intensity?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd