Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: A company has sales of 10 million dollar, variable costs of $5 million, EBIT of $2 million, & a degree of combined leverage of 3.0.

[A] If the company has no preferred stock, find out its annual interest charges?

[B] If the company wishes to lower its degree of combined leverage to 2.5 by decreasing interest charges, find out the new level of annual interest charges be?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919465

Have any Question? 


Related Questions in Basic Finance

Conflicts of interest are a type of one of the problems

Conflicts of interest are a type of one of the problems created by asymmetric information. Describe the problem that can happen when an institution provides multiple services?

You buy 700 shares of stock at a price of 70 and an initial

You buy 700 shares of stock at a price of $70 and an initial margin of 55 percent. If the maintenance margin is 40 percent, at what price will you receive a margin call? (Do not round intermediate calculations. Round you ...

Michael garber summarymark x company manufactures farm and

Michael Garber Summary: Mark X Company manufactures farm and specialty trailers of all types. Almost more than 85 percent of the company's sales come from the west coast. A growing market for custom horse transport vans ...

How money market rates may respond to prevailing conditions

How Money Market Rates May Respond to Prevailing Conditions : How have money market rates changed since the beginning of the semester? Consider the current economic conditions. Do you think money market rates will increa ...

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. Elder Ltd is the ap ...

State whether each of the following will result in a

State whether each of the following will result in a movement along or a shift in the monetary policy reaction curve and in which direction the effect will be. a. Policymakers increase the real interest rate in response ...

1 after reading your report as well as comments by

1. After reading your report, as well as comments by others on the team, the Genesis Energy team began to understand the importance of cash flow and financing in high-growth scenarios. The Genesis Energy accountant sugge ...

Learning outcomesthis assignment has been structured in

Learning Outcomes This assignment has been structured in accordance with the following Graduate Attributes: - Ability to demonstrate the quantitative skills taught in the unit. - Use of computing skills to effectively pr ...

Using the loanable funds theory show in a graph how each of

Using the loanable funds theory, show in a graph how each of the following events affects the supply and demand for loans and the equilibrium real interest rate: a. A war leads the government to increase spending on the ...

In country a suppose that changes in short-term interest

In Country A suppose that changes in short-term interest rates translate quickly into changes in long-term interest rates, while in Country B long-term interest rates do not respond much to changes in short-term rates. I ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate