Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: I have a problem on fixed operating cost they are 5.8 million as it variable cost ratio is 0.20 the firm has $2 million on bonds outstanding with a coupon interest rate of eight percent. They have 30,000 shares of preferred stock outstanding which pays USD 2 annual dividend there are 100,000 shares of common stock outstanding. Revenues for the firm are USD 8 millions and the firm is in the 40% income tax bracket. I need to find out degree of operating leverage and financial leverage and to determine the degree of combined leverage and interpret the value. 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916245

Have any Question? 


Related Questions in Basic Finance

Directions read carolina blues credit report on the

Directions: Read Carolina Blue's credit report on the following pages. Carolina is seeking a bank loan to purchase a new vehicle. Analyze Carolina's credit report and answer the following questions to determine if Caroli ...

Why do financial intermediaries existwhat services do they

Why do financial intermediaries exist? What services do they provide to the public? Are all financial institutions financial intermediaries?

Explain why giving an independent central bank control over

Explain why giving an independent central bank control over the quantity of money in the economy should reduce the occurrences of periods of extremely high inflation, especially in developing economies.

Fe 570 course project- 1 select security stock index or a

FE 570 Course Project- 1. Select security (stock, index, or a mutual fund), time period (2 - 5 years) and download relevant daily closing prices from www.finance.yahoo.com. 2. Find technical strategy that yields positive ...

Tafkap industries has 5 million shares of stock outstanding

TAFKAP Industries has 5 million shares of stock outstanding selling at $13 per share, and an issue of $30 million in 8.5 percent annual coupon bonds with a maturity of 10 years, selling at 107 percent of par. Assume TAFK ...

Accounting is becoming a global business language provide

Accounting is becoming a global business language. Provide some evidence of this assertion. What are some of the implications of this trend?

Business finance discussion boardi need the following for

Business Finance Discussion Board I need the following for the coca-cola company Overview: Industry Analysis and Competitive Advantage We will focus on the company's competitive environment. The choice of which competito ...

Using the same graph as that described in given problem

Using the same graph as that described in given Problem, show how the central bank could use its control over the quantity of money to target a particular level of interest rate in the face of changes in velocity. Proble ...

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 ...

Hedging using futuressuppose a farmer is expecting that her

Hedging using futures Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000 pounds of orange juice in 3 months time. Suppose each orange juice futures contract is for 15,000 ...

  • 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