Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Corporate Finance Expert

Sales (10,500 skates @ $60 each)                           $    630,000 
Less: Variable costs (10,500 skates at $25)                    262,500 
     Fixed costs                                                          200,000 
                                                             ___________________________
  Earnings before interest and taxes (EBIT)                    167,500 
  Interest expense                                                     62,500 
                                                             ___________________________
  Earnings before taxes (EBT)                                      105,000 
  Income tax expense (30%)                                       31,500 
                                                            ____________________________
  Earnings after taxes (EAT)    $                                  73,500 
                                                           _____________________________

 Enter only numeric value rounded to 2 decimal places.

a) find out the degree of operating leverage.
b) find out the degree of financial leverage.
c) find out the degree of combined leverage.
d) find out the break-even point in units (number of skates).

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M9650

Have any Question? 


Related Questions in Corporate Finance

1 make a list of five general topic areas that interest you

1. Make a list of five general topic areas that interest you. For each, identify the source of ideas you used to come up with that topic. 2. List five behaviors that you could observe in your day-to-day life. For each on ...

Assignmentnicole martins is the controller at umc corp a

Assignment Nicole Martins is the controller at UMC Corp., a publicly-traded manufacturing company. Last year, UMC had annual sales revenue of $15 million. The first quarter of this year just ended, and Nicole needs to pr ...

Mini case the cost of capital for goff computer incyou have

Mini Case: The Cost of Capital for Goff Computer, Inc. You have recently been hired by Goff Computer, Inc. (GCI), in the finance area. GCI was founded eight years ago by Chris Goff and currently operates 74 stores in the ...

Use the following firms to complete this problem

Use the following firms to complete this problem: Anheuser-Busch Companies, Inc. (BUD) Coca-Cola Company (KO) Molson Coors Brewing Company (TAP) PepsiCo, Inc. (PEP) Go to http://fi nance.yahoo.com, and input the ticker s ...

Problem -acquisition targetmust do1 list all the pros and

Problem - Acquisition target MUST DO: 1) List all the pros, and cons of such an acquisition, using whatever analysis techniques you choose. 2) However - YOU MUST explain why you selected the methods you did, and how you ...

Eisner amusement parks reported the following data in its

Eisner Amusement Parks reported the following data in its most recent annual report: Sales $42.5 million Net Income $3.8 million Dividends $1.1 million Assets $ 50.0 million Eisner is financed 100 percent with equity. Wh ...

Financial assignmentread the following case studyprecision

Financial Assignment Read the following case study: Precision Machines is preparing a financial plan for the next six months to determine the financial needs of the company. The historical analysis of the company's sales ...

Leave a voice mail messageimagine that you are following up

Leave a voice mail message. Imagine that you are following up on a cover letter you sent. Use the guidelines in this chapter to leave a short, professional voice mail message on your instructor's office phone that shows ...

1 what is meant by availability in logistics customer

1. What is meant by availability in logistics customer service? Provide examples of the different ways to monitor a firms performance in availability. 2. Compare and contrast speed, consistency, and flexibility as operat ...

Assignmentcarefully work through the analysis of the

Assignment Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now. As an adviser to the company you ...

  • 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