Ask Question, Ask an Expert

+61-413 786 465

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

Question - assume that the average firm in your companys

Question - Assume that the average firm in your company's industry is expected to grow at aconstant rate of 6 percent and its dividend yield is 7 percent. Your company is about as risky as the average firm in the industr ...

Questions -q1 fv of ordinary annuity what is the future

Questions - Q1: (FV of Ordinary Annuity) What is the future value of a $50 annuity payment over 20 years if the interest rates are 6%? Q2: (PV of Ordinary Annuity) What is the present value of above annuity? Q3: (FV and ...

Financial and economic interpretation and communication

Financial and Economic Interpretation and Communication Assessment - Wealth report Assessment Description - This assessment requires you to prepare a wealth report for a prospective shareholder that interprets the annual ...

Question - given1 under armour annual report - you will

Question - Given 1. Under Armour Annual Report - You will find the financial statements in this annual report. 2. Nike Annual Report - You will find the financial statements in the 10-K. Instructions for final project: 1 ...

Assignment -topic - recent years have seen rapid

Assignment - Topic - Recent years have seen rapid development in Australia's housing market. The effect of high housing prices on Australian families is enormous. Despite those challenges, you would like to buy 3-bedroom ...

Q1 delta hedgingon sept 30th 2011 exxon mobil xom stock was

Q1 (Delta Hedging) On Sept 30th, 2011, Exxon Mobil (XOM) stock was traded at $72.63 while the December XOM put option with $75 exercise price is traded at $5.00 and the December XOM call option with $70 exercise price is ...

Descriptionstudents are required to study undertake

Description: Students are required to study, undertake research, analyse and conduct academic work within the areas of corporate finance. The assignment should examine the main issues, including underlying theories, impl ...

Assignment -the main objective of this assignment is to

Assignment - The main objective of this assignment is to emphasis the importance of consideration time value of money in financial management decisions. It will cover time value of money, investment valuation and firms' ...

Graph an event study relationshipthe event in consideration

Graph an event study relationship. The event in consideration here is: "Environmental performance, being green, clean-tech, corporate sustainability, and many other "green" issues are on the forefront of the current econ ...

Assignment - credit card liabilities and fraudwhen a credit

Assignment - Credit Card Liabilities and Fraud When a credit card is lost or stolen, it can be used until its owner reports it as missing. This loss of one's credit card can result in fraud and therefore, being aware of ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As