Will the new level of operating leverage be higher or lower

Assignment Help Financial Management
Reference no: EM131060788

At an output level of 78,000 units, you calculate that the degree of operating leverage is 3.8. The output rises to 83,000 units. What will the percentage change in operating cash flow be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage change in OCF %

Will the new level of operating leverage be higher or lower? Higher Lower

Reference no: EM131060788

Questions Cloud

Number of pairs of men new balance sneakers : The following data show the number of pairs of men's New Balance sneakers that were sold over the last 25 weeks at a discount shoe store.
Descriptive statistics and histograms for the variable : Write up the assignment the descriptive statistics section will go in the middle of the assignment, however you really need to do it first.
Compute the percentage total return : Suppose a stock had an initial price of $60 per share, paid a dividend of $2.20 per share during the year, and had an ending share price of $70. Compute the percentage total return
What is the trailing twelve month price-earnings ratio : Rudy’s stock is currently valued at $28.40 a share. The firm had earnings per share of $1.86 last year and projects earnings of $2.09 a share for next year. What is the trailing twelve month price-earnings ratio?
Will the new level of operating leverage be higher or lower : At an output level of 78,000 units, you calculate that the degree of operating leverage is 3.8. The output rises to 83,000 units. What will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or lower? ..
Prepare a report on organic food industry : Prepare a 3000 words report on Organic food industry. Clear and concise target market, segments and positioning (includes positing mapping) followed by the company. Comments on both Micro environmental and Macro environmental forces affecting the com..
What is the maximum allowable bending moment for the beam : A wood beam reinforced by an aluminum channel section is shown in the figure. The beam has a cross section of dimensions 150 mm by 250 mm, and the channel has a uniform thickness of 6 mm.
How does the organism obtain its energy : How does the organism obtain its energy? For this observation, you will document specific aspects of energy ecology. Some examples would be the type(s) of food, the amount of food, and the temporal pattern of feeding.
What will happen to bond price if yield to maturity falls : A General Power bond with a face value of $1,000 carries a coupon rate of 8.9%, has 9 years until maturity, and sells at a yield to maturity of 7.9%. What will happen to the bond price if the yield to maturity falls to 6.9%?

Reviews

Write a Review

Financial Management Questions & Answers

  What is present value of all future earning if interest rate

Analysts predict that your company's earnings will grow at 40% per year for the next five years. After that, earnings growth is expected to slow to 2% per year and continue at that level forever. Your company has announced earnings of $2 million. Wha..

  Perpetual preferred stock

Tunney Industries can issue perpetual preferred stock at a price of $55.00 a share. The stock would pay a constant annual dividend of $6.00 a share. What is the company's cost of preferred stock, rp?

  Calculate economic order quantity

Cheeseburger and Taco Company purchases 15,460 boxes of cheese each year. It costs $26 to place and ship each order and $8.93 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate..

  What is the value of the embedded call option

Assume that the 3-year 4.5% bond is callable in Year 1 at (101) and in Year 2 at par. The call rule is to call whenever the price exceeds the call price. Calculate the value of the bond with the embedded option. What is the value of the embedded call..

  What is the effective annual return over the bonds life

A $1,000 face value zero coupon bond is purchased for $700 five years prior to maturity. What is the effective annual return over the bond’s life?

  Issuing a tax-exempt bond

Charles City Hospital plans on issuing a tax-exempt bond at the bond are $1,000. If required market rates are 6 percent, the value of the bond

  An ordinary annuity has a value

An ordinary annuity has a value of $1333.85 at the end of 4 years when $150 is deposited every 6 months into an account earning 6% compounded semiannually. How much interest has been earned?

  Cost of capital is the same as the cost of equity for firms

The cost of capital is the same as the cost of equity for firms that are financed:

  Define what is the project''s net present value

The appropriate discount rate for this project is 10 percent. If the project has a 14 percent internal rate of return, what is the project's net present value?

  End of each year into an equity fund

Assume you invest $5,300 at the end of each year into an equity fund. The fund is expected to pay 11.4% percent interest annually. How much money will you have in the fund in 20 years?

  Determine whether the account is profitable for the bank

The typical customer keeps an average monthly balance net of float equal to $ 116 in the account and pays a $ 3.25 monthly service charge. The bank must hold 10 percent required reserves against the average balance and thus can invest 90 percent of t..

  Expected return and standard deviation of market portfolio

Imagine an economy that is only made of two stocks and a risk-free security, with the following data. Number of Shares Share Price Expected Return Standard Deviation. What are the expected return and standard deviation of the market portfolio?

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