What is its degree of operating leverage

Assignment Help Financial Management
Reference no: EM13767594

Finance Corp has fixed costs of $7 million and profits of $4 million. What is its degree of operating leverage (DOL)?

Reference no: EM13767594

Questions Cloud

Opening journal entries for the transactions : The following information relates to Old McDonalds Ltd for the month of January, 2014:
The purpose of the term project is to explore an it : The purpose of the term project is for you to explore an IT topic of your choice. You may choose any IT topic, subject to instructor's approval.
Finding the required interest rate : Your parents will retire in 20 years. They currently have $320,000, and they think they will need $2,500,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer..
What sarbanes oxley means to you : Read the article Governance in the Spotlight: What Sarbanes Oxley means to You. In this article the author outlines provisions companies are now required to implement
What is its degree of operating leverage : Finance Corp has fixed costs of $7 million and profits of $4 million. What is its degree of operating leverage (DOL)?
Keeping inventory-and profits- off the discount rack : In Keeping Inventory-and Profits- Off the Discount Rack, the Zara strategy is explored more in depth. Use this article for an article review. In your review, discuss how this problem or issue impacts supply chain performance.
List two characteristics of real and intellectual property : List two characteristics each of real, intellectual, and personal property. Do owners of real, intellectual, and personal property each have the same rights under the law? List how each type of property is treated under the law
Purchases by using a linear regression model : You are working with a company selling building material to builders. You predict the quarterly purchases of customers based on their current purchases by using a linear regression model.
Study of alcohol use and abuse : Study of Alcohol Use and Abuse-Explain why you believe it to be an appropriate referral for Mr. Moore specifically

Reviews

Write a Review

Financial Management Questions & Answers

  Treasury bonds currently have a nominal yield

Assume that 4-year Treasury Bonds currently have a nominal yield of 6.2%, and a 4-year Corporate Bonds have a nominal yield of 8.5%. If Maturity Risk Premium (MRP) on all 4-year contracts currently is 1.3%, and Corporate Bonds currently have addition..

  What is the net income for firm

Lifeline, Inc., has sales of $590,000, costs of $268,000, depreciation expense of $68,500, interest expense of $35,500, and a tax rate of 40 percent. Required: What is the net income for this firm?

  Footnote for danerys year-end financial statements

Write the footnote for Danerys' year-end financial statements (assume 12/31/13 year-end) related to goodwill and other intangible assets - Determine the appropriate acquisition-date journal entry for the acquisition.

  Assume no other income and taxes during retirement

Amanda is expected to receive full social security retirement benefit of $15500 annually when she turns 65. These benefits can be increased by 40% if she delays taking them till age 70. If her life expectancy is 90 years and expected rate of return i..

  What is the exchange rate between the rupee and pound

Assume the exchange rate between US dollar and Indian Rupee is 60 Rupees = $1, and exchange rate between dollar and British pound is 1 Pound = $1.50. What is the exchange rate between the Rupee and pound?

  Considered to be the least risky

Which of the following are considered to be the least risky?

  Make a portfolio of these two stocks the least risky

Consider two stocks. If all their characteristics remain the same except for the correlation coefficient, which value of the correlation would make a portfolio of these two stocks the least risky?

  What is the RNOA

Before going into year-end closing a company has operating income of $40,000 with a marginal tax rate of 25%. Operating assets are $500,000 and operating liabilities are $200,000. What is the RNOA?

  On 1 march 2013 zentique inc reported its financial results

on 1 march 2013 zentique inc. reported its financial results an extract of the 2012 balance sheet is shown belowin

  What is raylans initial mortgage payment

Raylan Givens borrows $150,000 to buy a house. The adjustable rate mortgage carries a 1.5 percent rate for the first 3 years. After that the rate will change annually to reflect market conditions. The annual cap is 2% (i.e., the largest increase in a..

  Viewed in the context of its effect on stockholders risk

Briefly explain the following statement: The standalone risk of an individual corporate project may be quite high, but viewed in the context of its effect on stockholders’ risk, the project’s true risk may be much lower.

  Input the amount as positive value

On January 1, you sold one March maturity S&P 500 Index futures contract at a futures price of 1,750. If the futures price is 1,850 on February 1, what is your profit or loss? The contract multiplier is $250. (Input the amount as positive value.)

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