What is muddy’s degree of operating leverage (dol)

Assignment Help Finance Basics
Reference no: EM131407889

Muddy Murphy's degree of financial leverage (DFL) is 4×. The company knows that if sales are 6 percent higher than forecasted, its EPS will increase by 36 percent. What is Muddy's degree of operating leverage (DOL)?

Reference no: EM131407889

Questions Cloud

What should be bit’s dividend payout ratio this year : The firm has 500,000 shares of stock outstanding. If net income is expected to be $2 million, what should be BIT's dividend payout ratio this year?
Does given represent a designed experiment : In one of the sections, computer-assisted instruction and review software is utilized; in the other section, it is not. All students are given the same final examination at the end of the semester. Does this represent a designed experiment? Expla..
What should be hawaiian’s dividend payout ratio this year : According to the residual dividend policy, what should be Hawaiian's dividend payout ratio this year?
Does given represent a designed experiment : From each of four suppliers, a quality-control technician collects a random sample of 10 rivets, then measures the number of pounds each will withstand before it fails. Does this represent a designed experiment? Explain.
What is muddy’s degree of operating leverage (dol) : Muddy Murphy's degree of financial leverage (DFL) is 4×. The company knows that if sales are 6 percent higher than forecasted, its EPS will increase by 36 percent. What is Muddy's degree of operating leverage (DOL)?
Does given represent a designed experiment : She does the same for a random sample of 9 professors in the College of Business and for a random sample of 8 professors in the College of Fine Arts. Does this represent a designed experiment? Explain.
Difference between science and pseudoscience : Determine at least two ways in which the material discussed this week has changed your own thinking.
What is jj’s degree of operating leverage : The CFO of Jupiter Jibs (JJ) expects this year's sales to be $2.5 million. EBIT is expected to be $1 million. The CFO knows that if sales actually turn out to be $2.3 million, JJ's EBIT will be $880,000. What is JJ's degree of operating leverage (..
Does given represent a designed experiment : In one of the sections, computer-assisted instruction and review software is utilized; in the other section, it is not. All students are given the same final examination at the end of the semester. Does this represent a designed experiment? Expla..

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the risks of not hedging

You looked online and found that June T-bond future psi are trading at 111'25. What are the risks of not hedging, and how might TS hedge this exposure? In your analysis, consider what would happen if interest rates all increased by 1%.

  Explain the rationale behind time series designs

Why is contemporary history a threat to internal validity in a simple interrupted time series design?

  Effects of international portfolio diversification

Analyze effects of international portfolio diversification on an investment portfolio. Examine alternative investment vehicles.

  Construct a depreciation schedule

An asset has a value of $1,500 and a useful life of 5 years. Its trade-in value is $300. Use the amortized method to construct a depreciation schedule assuming that the interest rate is 5%.

  What happens to a farmer when irrigation water dries up

Explain the analogy relating irrigation flows to flows of funds in the financial system.- What happens to a farmer when irrigation water dries up?

  What does bond selling at a discount or at premium tell you

FIN 534 - What does a bond selling at a discount or at a premium tell you about the relationship between rd and the bond's coupon rate? Would we now have a discount or a premium bond?

  What is the projected dividend for the coming year

The required return on this stock is 12 percent, and the stock currently sells for $80 per share. What is the projected dividend for the coming year?

  Strickler technology is considering changes in its working

strickler technology is considering changes in its working capital policies to improve its cash flow cycle. strickler

  Familiar with the concept of free riding

(1)All of us on some level are familiar with the concept of free riding. In this discussion, give an example free riding that you have experienced. This can be an observation of other free-riders or a case where you have been a free-rider of public g..

  What is roi

If you financed $80,000 with a bank and only used $20,000 for a down payment and paid for taxes, repairs, and interest expense of $4,000, what would your ROI be?

  Calculate the ebit-eps indifference point

Emco Products has a present capital structure consisting only of common stock. The corporation is considering a major expansion. At this time, the company is undecided between the following two financial plans

  The possible determinants of market interest rates.

1.Form a discussion on the possible determinants of market interest rates. For each determinant offer illustration for when that determinant may tend to be either stronger or weaker and what is the driving force for that differential impact. For exam..

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