3. How does operating leverage impact the operating risk and profit levels of a company?

Q: what determines the market value of a company?

A: Market esteem (otherwise called OMV, or "open market valuation") is the value a resource would get…

Q: How do the DuPont technique helps the firm’s managers to further analyze its returns?

A: DuPont analysis is referred to as the framework regarding the analysis of the fundamental…

Q: The financial leverage implications for company analysis?

A: 1. Financial Leverage: To finance the New Assets management borrowed money. it is called financial…

Q: what determines the market value of a company are not profits, per se, but rather, cash flows?

A: Market value of a company : In simple words, the market value of a company refers to the value of a…

Q: A. Operating expenses are a function of: a. The cost of equity and the cost of debt b. The…

A: Operating Expenses: In the business world, an operational expenditure is a cost that a company…

Q: 1.What value can the price-sales ratio provide to financial managers that the price-earnings ratio…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: Can a company be profitable but not liquid? Explain.

A: Liquidity: It can be defined as the ease or quickness with which the short term assets of a company…

Q: The ability of a company to meet its long-term obligations is termed: A) Profitability B) Solvency…

A: As we basically know that ,there are different types of companies are formed, some of them are ,…

Q: What are the two fixed financial costs most commonly found on the firm’s income statement in respect…

A: In finance, the term “leverage” represents use of outsiders’ funds to finance capital assets of the…

Q: What does it mean if the companies operating leverage is higher or lower than another company!

A: Operating leverage is used to determine the efficiency of the firm to utilize fixed operating…

Q: Explain how profits or losses can be magnified for a firm with high operating leverage as opposed to…

A: Operating Leverage: It is ratio to change in operating profit to change in revenue. Any change in…

Q: What is "Basic EPS" and how is it calculated? Is this number a good indicator for future company…

A: Basic EPS: Basic earnings per share show the profit made by the company after all expense…

Q: How do i calculate market valuation in a company?

A: The term market valuation of a company refers to the ascertainment of the value of the company as…

Q: How will a company view working capital – positive, negative, or a necessary evil?

A: The difference between current assets and current liabilities is used to calculate working capital.…

Q: 1. What is the controllable margin of Black Company? 2. What is the average operating assets of…

A: Solution:- 1) calculation of controllable margin of Black Company as follows:-

Q: 1. What is the controllable margin of Greer Company? 2. What is the return on investment of Greer…

A: Return on investment refers to the amount that the investors are expected to be received or is…

Q: What is the implication of managerial entrenchment: should company favor debt or equity? Why?

A: Managerial entrenchment theory-says that allotment of shares inside the organization such as…

Q: The business risk of a company is most accurately measured by the company's: a. Debt-to-equity…

A: Bussiness risk consists uncertainty of sales and profits and other production related uncertainty.

Q: he level of financial risk to which a firm is exposed is dependent on the firm's: (a) tax rate (b)…

A: Financial risk can be defined as the risk of availing of finance and not being able to return it. It…

Q: analyze

A: Profitability analysis refers to allocation of expenses & analyzing the profits or earnings of…

Q: Required: Analyze the company's strengths and weaknesses in terms of liquidity, solvency and…

A: Financial ratio: Financial ratios can be defined as accounting ratios that reflects the relation…

Q: Explain what the companies should do with their profits, conditional to the availability or absence…

A: Profit is the remaining sales after the company has recorded all expenses and is also called income.…

Q: performance

A: The term financial leverage refers to the amount of debt that is used by the company in order to…

Q: What could possibly go wrong while using financial leverage? Do you think it should be utilized by a…

A: Financial leverage: Financial leverage is a word that describes the use of borrowed money (debt) to…

Q: What is the difference between financial leverage and operating leverage

A: Operating leverage: Operating leverage is a sign of how a corporation's costs are organized and is…

Q: How does Net Proft Margin, ROA, and ROE determine a firm's financial profitability?

A: Financial profitability refers to that financial situation of a company in which its revenues are…

Q: The business risk of a company is most accurately measured by the company's: a. Debt-to-equity…

A: Various risk is associated with business, some of them are controllable by the company while some…

Q: What can you say about the market value of the company? is it positve or is negative?

A: In finance market value of a company is the worth of the company and the worth of the company is…

Q: Which of the following is concerned with the relationship between the firm's EBIT and EPS? * a.…

A: Solution: Degree of financial leverage (DFL) is a ratio that measures the sensitivity of a earnings…

Q: How can you tell of a company is profitable?

A: Profit. of a Company:After deducting all of the costs associated with running a business, the amount…

Q: nefits do c

A: Corporate stakeholders : In simple words, corporate stakeholders refers to those individuals or…

Q: a) Define financial leverage. b) What is the effect on earnings? c) When is the use of financial…

A: a) When the company using the debt capital in order to increases the assets and conducting the…

Q: What is the calculation for 'Profit Margin' for the firm in that picture?

A: Information Provided: 2015 net profit = 39,878 2015 Revenue = 100,000   2016 net profit = 11,527…

Q: Which of the following are not part of the components ofthe DuPont system for measuring and…

A: DuPont system is used to measure the return on the equity.

Q: What is earnings quality? What are the possible topics or areas that the reported  earnings may not…

A: When you look at a company's earnings, you can see how good they are by ignoring any anomalies,…

Q: What is the risk-return tradeoff that arises when a firm manages its working capital? Give tangible…

A: Risk is referred as the probability or chance, which has an outcome or actual gains of an…