Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Faston Inc expects sales of silicon chips to be 60 million dollar this year. Because this is a very capital intensive business, fixed operating costs are 20 million dollar. The variable cost ratio is 40 percent. The firm's debt obligations consist of a $4million, 10% bank loan and a 20 million dollar bond issue with an 11% coupon rate. Faston has 1 million shares of common stock outstanding, & its marginal tax rate is 40%

[A] find out Faston's degree of combined leverage

[B] find out Faston's EPS if sales decline by 5%

[C] find out Faston's degree of operating leverage

[D] find out Faston's degree of financial leverage

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919467

Have any Question? 


Related Questions in Basic Finance

1 pessimists commonly claim that if you drop a piece of

1. Pessimists commonly claim that, if you drop a piece of buttered bread, it will probably land butter-side down. Identify the mode of inquiry (authority, rational, empirical) you would use to evaluate this claim, and br ...

1 which type of error do researchers usually regard as more

1. Which type of error do researchers usually regard as more serious? Why? 2. Explain what it means if a researcher sets the alpha level for a statistical test at .05. 3. What does it mean if the difference between two m ...

Specialty retailerwith this case we review the cash flow of

SPECIALTY RETAILER With this case, we review the cash flow of several specialty retail stores. The companies reviewed and the year-end dates are as follows: 1. Abercrombie & Fitch Co. (52-week fiscal year ended January 2 ...

A hedge fund is currently engaged in a plain vanilla euro

A hedge fund is currently engaged in a plain vanilla euro swap in which it pays euros at the euro floating rate of Euribor and receives euros fixed. It would like to convert this position into one in which it pays the re ...

Consider a us investor who owns a portfolio of japanese

Consider a U.S. investor who owns a portfolio of Japanese securities worth 160 million japanese yen. In order to hedge to currency risk, he considers buying currency puts on yen instead of selling futures contracts. In P ...

Revise to convey an appropriate tone-revise the paragraph

Revise to convey an appropriate tone:- Revise the paragraph to create a more confident, less presumptuous tone. If you believe my proposal has merit, I hope that you will allocate $50,000 for a pilot study. It's possible ...

The ok railroad needs to raise 95 million for capital

the O.K. Railroad needs to raise $9.5 million for capital improvements. One possibility is a new preferred stock issue - 8 percent dividend, $100 par value - stock that would yield 9 percent to investors. Flotation costs ...

Boeing is using world-class manufacturing facilities in

Boeing is using world-class manufacturing facilities in Japan to supply components for its new Dreamliner. Should Boeing consider building production plants in countries like India and China, where there are many excelle ...

1 distinguish among descriptive correlational experimental

1. Distinguish among descriptive, correlational, experimental, and quasi-experimental research. 2. Distinguish between an independent and dependent variable.

1 what is behavioral research what are its fundamental

1. What is behavioral research? What are its fundamental goals and limitations? Why is learning about behavioral research important? 2. In what ways is behavioral research similar to and different from research in the na ...

  • 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