Number of products produced and sold 200,000 units. The selling p of each unit is 17,000 Rials and the variable costs of each unit are 12,000 Rials, the fixed cost is 37.5 million Rials, the interest cost is 200,000,000 Rials, the preferred dividend is 140 million Rials, the number of ordinary shares is 50,000 shares, the tax rate is 40%. It is desirable: A)Profit before interest, and tax Ebit B) Earnings per share Eps C) Qb operational head-to-head point D)QL operational lever E) Financial leverage FL

Number of products produced and sold 200,000 units. The selling p of each unit is 17,000 Rials and the variable costs of each unit are 12,000 Rials, the fixed cost is 37.5 million Rials, the interest cost is 200,000,000 Rials, the preferred dividend is 140 million Rials, the number of ordinary shares is 50,000 shares, the tax rate is 40%. It is desirable: A)Profit before interest, and tax Ebit B) Earnings per share Eps C) Qb operational head-to-head point D)QL operational lever E) Financial leverage FL

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 13P

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