Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,706,343. The...
Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,706,343. The firm’s interest expense was $2,299,507.
What is the firm’s degree of financial leverage? Round the answer to two decimals
Homework Answers
| Degree of financial leverage | = | EBIT | / | EBT | ||||
| = | $ 37,06,343 | / | $ 14,06,836 | |||||
| = | 2.63 | |||||||
| Working: | ||||||||
| EBIT | = | Operating profit | ||||||
| EBT | = | EBIT - Interest | = | $ 37,06,343 | - | $ 22,99,507 | = | $ 14,06,836 |
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Irresistible Chips is reviewing its financial condition. The
firm generated an operating profit of $3,706,343. The...
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Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,364,082. The firm's interest expense was $2,224,806. What is the firm's degree of financial leverage? Round the answer to two decimals
Question 2 (1 point) Irresistible Chips is reviewing its financial condition. The firm generated an operating...
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degree of operating leverage and financial leverage
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Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,364,082. The firm's interest expense was $2,224,806. What is the firm's degree of financial leverage? Round the answer to two decimals
Question 2 (1 point) Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $4,441,092. The firm's interest expense was $2,081,497. What will be the resulting percentage change in earnings per share if they expect operating profit to change 9.1 percent? (You should calculate the degree of financial leverage first). (Write the percentage sign in the "units" box). Round the answer to two decimals Your Answer: Answer units
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Integrative-Leverage and risk Firm has sales of 104.000 units at $2.05 per unit, variable operating costs of $1.71 per unit, and fixed operating costs of $6,000 Interest is $10.080 per year Firm Whas sales of 104 000 units at $2.56 per unit, variable operating costs of $0.98 per unit, and fixed operating costs of $62,800 Interest is $17.900 per year. Assume that both firms are in the 40% tax bracket a. Compute the degree of operating, financial, and total leverage...
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