The law firm of Donald, Cheatem, and Howe has monthly fixed costs of $81,000, EBIT of...
The law firm of Donald, Cheatem, and Howe has monthly fixed costs of $81,000, EBIT of $220,000, and depreciation charges on its office furniture and computers of $5,000. Calculate the Cash Flow DOL for this firm. (Round answer to 3 decimal places, e.g. 15.251.)
1.
| The firm’s Cash Flow DOL is |
Homework Answers
cash flow DOL = 1+ (fixed costs / EBITDA)
here.
fixed costs = 81,000
EBITDA = EBIT + depreciation
=>220,000+5,000
=>225,000.
cash flow DOL = 1 +(81,000/225,000)
=>1 + 0.36
=>1.360.
Add Answer to:
The law firm of Donald, Cheatem, and Howe has monthly fixed
costs of $81,000, EBIT of...
KOSTENFREMUSED -- Principles Finance Assignments CH 12 Homework CH 12 Homework Send to Gradebock Question 2...
KOSTENFREMUSED -- Principles Finance Assignments CH 12 Homework CH 12 Homework Send to Gradebock Question 2 View Polides Current Attempt in Progress sport The law firm of Joseph Cheatem, and Howe has monthly foxed costs of $90,000, EBIT of $295,000, and depreciation charges on its office furniture and computers of $5.000. Calculate the Cash Flow DOL for this form. (Round answer to 3 decimal places, es 15.251) The firm's Cash Flow DOL IS e Textbook and Media Attempts: 0 of...
10.20) The law practice of Smyth, Pritcher and Dunne has monthly fixed costs of $115000, EBIT...
10.20) The law practice of Smyth, Pritcher and Dunne has monthly fixed costs of $115000, EBIT of $289000 and depreciation charges on its office furniture and computers of $5800. Calculate the cash flow DOL for this company. 10.29) Twilight Candles will be producing a new line of dripless candles. If the large factory is chosen, the cost per unit to produce each candle will be $2.48, while the cost per unit will be $6.84 for the small factory. The large...
Sheridan’s Soft Lemonade is starting to develop a new product for which the cash fixed costs...
Sheridan’s Soft Lemonade is starting to develop a new product for which the cash fixed costs are expected to be $70,000. The projected EBIT is $100,000, and the Accounting DOL is expected to be 2.1. What is the Cash Flow DOL? (Round answer to 2 decimal places, e.g. 15.25.)
A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased...
A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased by $3,386. If the firm's tax rate is 30 percent and there were no increases in net working capital, what is the firm's free cash flow?
A firm has sales of $11,324, EBIT of $3,333, depreciation of $4,850, and fixed assets increased...
A firm has sales of $11,324, EBIT of $3,333, depreciation of $4,850, and fixed assets increased by $3,118. If the firm's tax rate is 30 percent and there were no increases in net working capital, what is the firm's free cash flow?
A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200...
A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200 units is $88,400. Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) Degree of operating leverage If units sold rise from 6,200 to 6,700, what will be the new operating cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Operating...
A firm has sales of $21,000, EBIT of $9,000, depreciation of $3,000, and fixed assets increased...
A firm has sales of $21,000, EBIT of $9,000, depreciation of $3,000, and fixed assets increased by $4,000. If the firm's tax rate is 30 percent and a $2,000 increase in net operating working capital, what is the firm's free cash flow?
A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased...
A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there were no increases in net operating working capital, what is the firm's free cash flow? Multiple Choice $500 $600 $7400 -$1,220
A small firm has monthly revenue of $15,000, variable costs of $12,000, and fixed costs of...
A small firm has monthly revenue of $15,000, variable costs of $12,000, and fixed costs of $5,000. The firm's profit is and it shut down. O-$2,000; should O -$3,000; should O $2,000; should not O $3.000, should not
We are evaluating a project that costs $1,160,000, has a ten-year life, and has no salvage...
We are evaluating a project that costs $1,160,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 44,000 units per year. Price per unit is $45, variable cost per unit is $20, and fixed costs are $645,000 per year. The tax rate is 35 percent, and we require a 20 percent return on this project. a-1 Calculate the accounting break-even point. Break-even point...
KOSTENFREMUSED -- Principles Finance Assignments CH 12 Homework CH 12 Homework Send to Gradebock Question 2 View Polides Current Attempt in Progress sport The law firm of Joseph Cheatem, and Howe has monthly foxed costs of $90,000, EBIT of $295,000, and depreciation charges on its office furniture and computers of $5.000. Calculate the Cash Flow DOL for this form. (Round answer to 3 decimal places, es 15.251) The firm's Cash Flow DOL IS e Textbook and Media Attempts: 0 of...
A firm has sales of $11,324, EBIT of $3,333, depreciation of $4,850, and fixed assets increased by $3,118. If the firm's tax rate is 30 percent and there were no increases in net working capital, what is the firm's free cash flow?
A small firm has monthly revenue of $15,000, variable costs of $12,000, and fixed costs of $5,000. The firm's profit is and it shut down. O-$2,000; should O -$3,000; should O $2,000; should not O $3.000, should not
We are evaluating a project that costs $1,160,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 44,000 units per year. Price per unit is $45, variable cost per unit is $20, and fixed costs are $645,000 per year. The tax rate is 35 percent, and we require a 20 percent return on this project. a-1 Calculate the accounting break-even point. Break-even point...
Most questions answered within 3 hours.
-
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 1 hour ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 1 hour ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 1 hour ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 2 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 3 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 2 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 2 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 3 hours ago -
A builder wants to install wall-to-wall carpeting in a living
room of length 8.87 m and...
asked 3 hours ago -
Organizational change can produce anxiety in those affected by
the change. In what ways can change...
asked 3 hours ago -
Ozone in the atmosphere may react with nitric oxide.
From the following data, calculate the DG...
asked 3 hours ago -
Steven Long, a bond analyst, is analyzing a convertible bond.
The characteristics of the bond are...
asked 3 hours ago