ZuoTi.Pro
Question

these are mulitple choice.


question 1
1. What is the Degree of Combined Leverage (DCL) of a firm with a Degree of Operating Leverage (DOL) of 1.4, and Degree of Fi

question 2

!. What is Net Working Capital? It is: a. The difference between Current assets and current liabilities b. The sum of cash an

question 3)

16. Also if a firm has fixed costs of $30,000, variable cost per unit of $0.75, and a break-even point of 5,000 units, what i

question 4

17. Of the three interest rate theories discussed in your text, which of them suggests that long. term interest rates are det


question 5
18. The following are the expected l year T-bill rates of Atlantis for the next 4 years: 3%, 4%, 5%, and 6%. Drawing on your

question 6

- Which of the following is a definition of capital structure? a. It is a mix of debt to a firms equity b. It is the ratio o
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Q1) Combined Leaverage = Operating Leaverage * Financial Leaverage
=1.4 *1.2
=1.68
Q2) The net working capital is the difference between curent asset and current liabilities.
Therefore option A is correct.
Q3) Break Even point means at a point of sale in units at which
sales revenue is equal to variable cost and fixed cost.
equation would be as follows
5000 units * sales price = 0.75 variable cost per unit *5000 units +$30000 fixed costs
5000 units * sales price =$33750
Sale Price =6.75 Per unit
Q6) Correct Option a
It is mic of debt to a firms's equity.
0 0
Add a comment
Know the answer?
Add Answer to:
these are mulitple choice. question 1 question 2 question 3) question 4 question 5 question 6...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Need help with the following Multiple choice questions . please help me with 7 , 8...

    Need help with the following Multiple choice questions . please help me with 7 , 8 , 9 , 12 , 19 , 20 , 22 , 23 & 25 We were unable to transcribe this image11. What is the Degree of Combined Leverage (DCL) of a firm with a Degree of Operating Leverage (DOL) of 1.4, and Degree of Financial Leverage (DFL) of 1.2? It is: a. 2.6 b. 1.25 C. 1.68 d. 0.6 e. None of the above....

  • questions 1-4 are mulitple choice please help. this is for finanical accounting. urgent!!! en seys, a...

    questions 1-4 are mulitple choice please help. this is for finanical accounting. urgent!!! en seys, a New York based fashion firm has EPS of $2.75. If Its DFL is 1.85, and operating earnings increase by 12%, what will be its new EPS, assuming there is no change in the number of shares of stock? a. $1.22 b. $3.15 C. $3.36 d. $2.97 e. None of the above. 11. What is the Degree of Combined Leverage (DCL) of a firm with...

  • these are mulitple choice question 1 question 2) question 3 question 4) question 5) One of...

    these are mulitple choice question 1 question 2) question 3 question 4) question 5) One of the following is a formula for computing Break-even point. Which one is a. BE = TR - FC - TVC = EBIT = $0 selos b. BE = TVC - FC + 1 = TR = $0 C. BE = TR - TVC = FC = $0 d. BE = TR + FC = TVC = $0 e. None of the above. Having accurately...

  • question 1 Part Three - Problems. Answer Three out of Four Problems Play-More Toys produces inflatable...

    question 1 Part Three - Problems. Answer Three out of Four Problems Play-More Toys produces inflatable beach balls, selling 400,000 balls per year. Each Dan produced has a variable operating cost of $0.84 and sells for $1.00. Fixed operating costs are $28,000. The firm has annual interest charges of $6.000, and a 40% tax rate. Now calculate one following: a. Operating Break-Even point in units b. Decree of Operating Leverage (DOL) c. Degree of Financial Leverage (DFL) d. Degree of...

  • question one please help Part Three - Problems. Answer Three out of Four Problems Each is...

    question one please help Part Three - Problems. Answer Three out of Four Problems Each is Worth One Two-Thirds (1.66) Points. 1. Easy Go produces summer straw hats, selling 330,000 hats per year. Each hat produced has a variable operating cost of $1.25 and sells for $2.50. Fixed operating costs are $32,000. The firm has annual interest charges of $5,000, and a 40% tax rate. Now calculate the following: a. Operating Break-Even point in units Decree of Operating Leverage (DOL)...

  • Select the correct term for each of the following descriptions. These are not necessarily complete definitions,...

    Select the correct term for each of the following descriptions. These are not necessarily complete definitions, but there is only one possible answer for each term. Descriptions Terms The level and nature of risk attributable to a firm's activities and operations, and ignoring the risks associated with the firm's capital structure. The situation in which outsiders, such as external shareholders, credits, suppliers, and customers have less and inferior information about a firm's past, current, and future conditions and prospects, compared...

  • questions 5-9 please help. these are mulitple choice dnather step important in the construction of a...

    questions 5-9 please help. these are mulitple choice dnather step important in the construction of a Pro Forma Income Statement is the determination of units of goods to produce. What is the formula for computing it? State it below: 6 Having accurately stated the formula for determining units of goods to produce in Question 5, now use it to compute the production requirement for Comco Inc., if Comco's Beginning Inventory is 155; Projected Unit Sales is 1,100, and Desired Ending...

  • Terms Descriptions The level and nature of risk attributable to a firm's activities and operation...

    Terms Descriptions The level and nature of risk attributable to a firm's activities and operations, and ignoring the risks associated with the firm's capital structure The situation in which managers have different, and usually better, information about their firm's past, current, and future conditions and prospects, compared to outsiders, such as external investors, creditors, suppliers, and customers A firm's use of relatively high fixed, as opposed to variable, operating costs, such as capital-intensive productive processes instead of labor-intensive methods This...

  • 6. Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . ....

    6. Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Accounts payable . . . . . . . . . . . . . . . . . . . . . 41 Accounts receivable . . . . . . . . . . . . . ....

  • question. 1) 1) Tf a firm's cash coverage ratio is greater than its times interest earned...

    question. 1) 1) Tf a firm's cash coverage ratio is greater than its times interest earned ratio, then the: A) firm has a high degree of liquidity. B) firm has no lease obligations. C) firm's assets are not fully depreciated. D) firm has very little long-term debt.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT