Ask Question, Ask an Expert


Ask Basic Finance Expert

problem1: A high degree of variability in a firm's earnings before interest and taxes refers to ______.

[A] financial leverage

[B] operating leverage

[C] business risk

[D] financial risk

problem2: Operating leverage refers to ________.

[A] The incurrence of fixed operating costs in the firm's income stream

[B] A high degree of variable costs of production

[C] Financing a portion of the firm's assets with securities bearing a fixed rate of return

[D] The additional chance of insolvency borne by the common shareholder

problem3: Ames Drilling Corp. reported that its sales and EBIT increased by 10%, but its EPS increased by 30%. The much larger change in earnings per share could be the result of ____.

[A] a high percentage of credit sale collections from prior years

[B] high fixed costs of production

[C] high operating leverage

[D] high financial leverage

problem4: A plant may remain operating when sales are depressed ____.

[A] in an effort to cover at least some of the variable cost

[B] unless variable costs are zero when production is zero

[C] if the selling price per unit exceeds the variable cost per unit

[D] to help the local economy

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919462

Have any Question? 

Related Questions in Basic Finance

1 a firm is considering the purchase of a machine which

1. A firm is considering the purchase of a machine which would represent an investment of $32 million, and would be depreciated in a straight-line basis over 3 years. Sales are expected to be $12 million per year, and op ...

Prepare a career preparation portfolioto prepare for your

Prepare a career preparation portfolio. To prepare for your job search, conduct research and meet with people who can help you. First, target specific people within companies where you might like to work. You will need t ...

Discuss the ethics of an advertisementon its website figure

Discuss the ethics of an advertisement. On its website (Figure 18), a company promises to deposit cash into a customer's bank account within 24 hours. In small groups, discuss tactics this company uses to persuade its au ...

1 when a doublet is added to a uniform stream so that the

1. When a doublet is added to a uniform stream so that the source part of the doublet faces the stream, a cylinder flow results. Plot the streamlines when the doublet is reversed so that the sink faces the stream. 2. A 2 ...

Capital budgeting analysis you have been asked to evaluate

Capital Budgeting Analysis : You have been asked to evaluate a potential acquisition of a smaller privately owned competitor. The acquisition candidate produces an EBITDA of 10% of your current EBITDA and is offered to y ...

Explain how characteristics of mncs can affect the cost of

Explain how characteristics of MNCs can affect the cost of capital ? From an investor's standpoint, have small companies, in general over the past, been more profitable than their larger brethren?

On august 20 a stock index futures which expires on

On August 20 a stock index futures, which expires on September 20, was priced at 429.70. The index was at 428.51. The dividend yield was 2.7 percent. Discuss the concept of the implied repo rate on an index arbitrage tra ...

Pretty lady cosmetic product has an average production

Pretty Lady Cosmetic Product has an average production process time of forty days. Finished goods are kept on hand for an average of fifteen days before they are sold. Accounts receivable are outstanding an average of th ...

Generate optimal code using two registers for each of the

Generate optimal code using two registers for each of the expressions of Exercise 8.10.1. Exercise Compute Ershov numbers for the following expressions:

In problem 1012 how far upstream does the flow from the

In Problem 10.12, how far upstream does the flow from the source reach? Problem 10.12 For the case of a source at the origin with a uniform free stream plot the streamline ψ = 0.

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro