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) Compute the break-even point in units (number of skates).

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M91154

Have any Question? 


Related Questions in Corporate Finance

Assignmentthe assignment requires you to prepare a full

Assignment The assignment requires you to prepare a full company overview that includes detailed information on your company's history, executive management team, future projections and other pertinent information. Futur ...

Explain why an options time value is greatest when the

Explain why an option's time value is greatest when the stock price is near the exercise price and why it nearly disappears when the option is deep-in- or out-of-the-money? Critique the following statement, made by an op ...

Review the assigned companys financial statements from the

Review the assigned company's financial statements from the past three years. Company assigned: Nike, symbol NKE. Calculate the financial ratios for the assigned company's financial statements, and then interpret those r ...

What is the primary role of the bolts in a bolted jointwhy

What is the primary role of the bolts in a bolted joint? Why do many designers of safety related joints, and most codes, favor joints that could support four or more times the anticipated service loads? You have roughed ...

1 financial characteristics what three financial

1. Financial Characteristics. What three financial characteristics can be monitored by analyzing your personal balance sheet? 2. Liquidity Ratio. What is the liquidity ratio? What does it indicate? How is the debt-to-ass ...

Select a subject and use a full-text database such as

Select a subject and use a full-text database such as PsycArticles to locate an empirical journal article that reports the results of a research study examining your subject. Specifically, find an article in which the re ...

Write a negative review onlinenow rewrite your customer

Write a negative review online. Now rewrite your customer complaint letter from Exercise for an online review. For your post to an online review site, you have a different audience: the public. Consider making changes fo ...

Memo and press releasethe company with which you are

Memo and Press Release The company with which you are currently employed is experiencing a financial crisis. The chief financial officer (CFO) has suddenly resigned and no one is discussing the reasons. The U.S. Securiti ...

Assignmentbradford services inc bsi is considering a

Assignment Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a 30 percent probability of good conditions, in which case the project will provid ...

1 is the ideal of a perfect order a realistic operational

1. Is the ideal of a perfect order a realistic operational goal? 2. Why is it important that a firm measure customer perception as a regular part of performance measurement? 3. Why are comprehensive measures of supply ch ...

  • 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