At a base sales level of R400,000, a firm has a degree of operating leverage of 2 and a degree of financial leverage of 1.5. What is the firm's degree of total leverage.
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At a base sales level of R400,000, a firm has a degree of operating leverage of 2 and a degree of financial leverage of 1.5. What is the firm's degree of total leverage.
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- Bulldogs Inc. has sales of P4,500,000, variable costs equal 75% of sales, and a fixed interest costs of P750,000. The current operating income of the firm is P1,050,000. What is the degree of combined leverage?Bulldogs Inc. has sales of P4,500,000, variable costs equal 75% of sales, and a fixed interest costs of P750,000. The current operating income of the firm is P1,050,000. What is the degree of combined leverage? a. 5.85 b. 3.75 c. 4.25 d. 4.05A firm has a tax burden ratio of .75, a leverage ratio of 1.25, an interest burden of .6, and a return on sales of 10%. The firm generates $2.40 in sales per dollar of assets. What is the firm’s ROE?
- A firm has EBIT of R375,000, interest expense of R75,000, preferred dividends of R6,000 and a tax rate of 40 percent. At a base EBIT level of R375,000, what is the firm's degree of financial leverage. (1)A firm has a profit margin of 15% on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500.00, and a after-tax interest cost on total debt of 5%, what is the firm's ROA?If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)
- a firm has an a profit margin of 3.8% and an equity multiplier of 1.90. its sales are 166.0 mil usd, and the firm has total assets of 61.0 mil usd. calculate the firm's roe."Sam Holdings is planning to open a new wholesaling operation. The target operating profit margin is 25%. The unit contribution margin will be 40% of sales. Average annual sales are forecast to be $4,250,000. The firm's total asset is $8,750,000 with debt-asset ratio of 40%. The firm pays 12% interest on the debt and has 100,000 common stocks. The firm is subjected to corporate tax rate of 28%. d. What is the degree of combined/total leverage (DCL/DTL)?A company has an operating leverage factor of 4. When its sales increase to P500,000, its profit before tax increased by 100%, Its variable cost ratio is 40%. How much is the company’s fixed cost?
- 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 (DOL)?BN had 5 degrees of operating leverage when its profit before taxes was P200,000. If the company’s sales increased by 15%, what is the company’s profit before taxes?A company has an operating leverage factor of 4. When its sale increased to Php 500,000.00, its profit before tax increased by 100%. its variable cost ratio is 40%, How much is the company's fixed costs?