Use the below information to answer the following question. Sales (1,000 units) $ 200,000 Variable costs 110,000 Contribution margin 90,000 Fixed manufacturing costs 40,000 Operating income 50,000 Interest 10,000 Earnings before taxes 40,000 Taxes (30%) 12,000 Net income $ 28,000 Shares Outstanding 1,000 Refer to the table. The degree of financial leverage (DFL) is _____.

Use the below information to answer the following question. Sales (1,000 units) $ 200,000 Variable costs 110,000 Contribution margin 90,000 Fixed manufacturing costs 40,000 Operating income 50,000 Interest 10,000 Earnings before taxes 40,000 Taxes (30%) 12,000 Net income $ 28,000 Shares Outstanding 1,000 Refer to the table. The degree of financial leverage (DFL) is _____.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 6P

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Please answer all. From a company we get the following:Capital employed 20,000,000 dollarDebt / equity ratio = 3Total income 40,000,000 dollarTotal profit 4,000,000 dollarInterest costs 1,500,000 dollarNet profit 2,500,000 dollara. Calculate the return on capital employed (Rsyss)b. Calculate the return on equity (Re)c. Show the relationship between profit margin and capital turnover rate and return on capital employedd. Demonstrate the relationship between the return on equity (Re) and the return on employed capital (Rsyss) with the help of the financial exchange!
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)
Use the below information to answer the following question. Sales (100,000 units) $ 1,000,000 Variable costs 300,000 Contribution margin 700,000 Fixed manufacturing costs 200,000 Operating income 500,000 Interest 75,000 Earnings before taxes 425,000 Taxes (30%) 127,500 Net income $ 297,500 Refer to the table. The degree of financial leverage is _____
Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $324. Variable cost per unit $187 Units sold 449 Fixed costs $8,589 Interest expense 17,204 Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 4.2 percent? (You should calculate the degree of financial leverage first). (Write the percentage sign in the "units" box).
Use the below information to answer the following question. Sales (1,000 units) Variable costs Contribution margin Multiple Choice $ 200,000 110,000 Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30%) Net income Shares Outstanding Refer to the table. The degree of combined leverage (DCL) is. 5.45x 90,000 40,000 50,000 10,000 40,000 12,000 $ 28,000 1,000
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9)If a company's contribution margin ratio is 0.40, targeted operating income is $80,000, and targeted sales volume in dollars is $500,000, then the operating leverage factor is how much?
U.S. Steal has the following income statement data: Units Sold Total Variable Costs Fixed Costs Total Costs Total Revenue Operating Income (Loss) 80,000 $ 160,000 $ 70,000 $ 230,000 $ 400,000 $ 170,000 100,000 200,000 70,000 270,000 500,000 230,000 The top row of the table has the beginning values and the bottom row of the table has the ending values. Compute the degree of operating leverage (DOL) based on the formula below. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. DOL = Percent change in operating income / Percent change in units sold Recompute DOL using the formula given below. There may be a slight difference due to rounding. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. DOL = Q(P − VC) / Q(P − VC) − FC Q represents beginning units sold (all calculations should be done at this level). P can be found by dividing total revenue by units sold. VC can be found by dividing total…
Company H wants to calculate degree of operating, financial and combined leverage for the company using 2018 financial data. The financial data are as follows: Sales (80,000 units) S800,000 Variable costs S250,000 $550,000 $150,000 Contribution Fixed costs $400,000 $50,000 Operating income Interest Earnings before taxes $350,000 What is the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of Combined Leverage (DCL)? a. DOL is 1.143; DFL is 1.132 and DCL is 1.571. b. DOL is 1.571; DFL is 1.143 and DCL is 1.143. c. DOL is 1.143; DFL is 1.143 and DCL is 1.137. d. DOL is 1.375; DFL is 1.143 and DCL is 1.571.
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he words a Sudi Use the following information to calculate the company's operating leverage, finan- ada bus EXERCISE 9: LEVERAGE CALCULATIONS brob cial leverage, and combined leverage: Sales volume Price per unit Variable costs (per unit) Fixed costs Interest Corporate income tax rate 100,000 units 11.30 moll 8.30 si diwory on $ $ $100,000 $ 25,000 40% EXERCISE 10: LEVERAGE CALCULATIONS Using the data in Exercise 9, assume that the company wants to make its plant more automated and is able to reduce the variable costs to $7.30 per unit, increase the fixed costs by $100,000 (i.e., to $200,000), and increase the finance costs from $25,000 to $35,000. Issigns Question 6: COST OF CAPITALA ENT Calculate the new operating leverage, financial leverage, and combined leverage.
1. The function of a company's product to produce output at the level of input use is Q = -1/3x3 + 9x3 + 70. If the input price x used is IDR. 800, - per unit, while the output price is IDR. 10, - per unit, specify: a. The amount of input that must be used by the company in orderto produce the amount of output that provides maximum finance! How much is the output? b. What is the average size of the company?

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Sales (1,000 units)	$	200,000
Variable costs		110,000
Contribution margin		90,000
Fixed manufacturing costs		40,000
Operating income		50,000
Interest		10,000
Earnings before taxes		40,000
Taxes (30%)		12,000
Net income	$	28,000
Shares Outstanding		1,000