What is luxury degree of financial leverage

Assignment Help Finance Basics
Reference no: EM131736147

Luxury Leisure's forecasted EBIT is $750,000. This year, Luxury will pay $250,000 interest on its debt and $320,000 dividends to its common stockholders. If its marginal tax rate is 40 percent, what is Luxury's degree of financial leverage (DFL)?

Reference no: EM131736147

Questions Cloud

Define the scale variable is discrete or continuous : For each of the following examples, state whether the scale variable is discrete or continuous. The capacity, in terms of songs, of an iPod.
Explain how a test such as the rorschach could be reliable : The book What's Wrong with the Rorschach: Science Confronts the Controversial Inkblot Test (Wood et al., 2003) presents an overview of scientific evidence.
What is the price of a 4-year : What is the price of a 4-year, 8.2% coupon rate, $1000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 11.9%?
How does the study reflect the concept of reliability : You may have been in a wine store and wondered just how useful those posted wine ratings are (usually a scale with 100 as the top score).
What is luxury degree of financial leverage : Luxury will pay $250,000 interest on its debt and $320,000 dividends to its common stockholders. If its marginal tax rate is 40 percent
What is its weighted average cost of capital : If DWC's capital structure consists of 40 percent debt and 60 percent common equity, what is its weighted average cost of capital (WACC)?
Discuss the ways to operationalizing the dependent variable : Weight Watchers leads to more weight loss, on average, if you go to meetings than if you participate online.
What is the company cost of common equity : Currently the company's common stock is selling for $34 per share. The most recent dividend paid by TTH was $4.25 per share.
How do computers represent data internally : How do computers represent data internally? Describe role of a motherboard. What determines the speed of a CPU? IS hardware is classified into what major types?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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