Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9. Calculating the degrees of leverage Omni Products Co. forecasts the following income statement for the next year: Income Statement For the Year Ended on

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
9. Calculating the degrees of leverage Omni Products Co. forecasts the following income statement for the next year: Income Statement For the Year Ended on December 31 Net sales $960,000 Less: Variable costs 532,000 Less: Fixed costs 115,000 EBIT, or NOI $313,000 Less: Interest 206,000 EBT $107,000 42,800 Less: Taxes Net income $64,200 Omni Products Co. uses no preferred stock in its capital structure. Click on the following lines and calculate the degrees of operating, financial, and total leverage for Omni Products Co. DOL DFL DTL Grade It Now Save & Continue Continue without saving 9. Calculating the degrees of leverage Omni Products Co. forecasts the following income statement for the next yea * Income Statement For the Year Ended on December 31 Net sales $960,000 Less: Variable costs Less: Fixed costs 532,000 115,000 EBIT, or NOI $313,000 Less: Interest 206,000 EBT $107,000 Less: Taxes 42,800 Net 1.52 $64,200 1.46 1.40 Omni Prod uses no preferred stock in its capital structure. Click on the fo total lever 1.59 Omni Products Co. 1.37 DOL DFL DTL Omni Products Co. forecasts the following income statement for the next yea Income Statement For the Year Ended on December 31 Net sales Less: Variable costs $960,000 532,000 115,000 Less: Fixed costs EBIT, or NOI $313,000 Less: Interest 206,000 EBT $107,000 2.12 Less 42,800 2.80 Net $64,200 2.44 2.62 Omni Prod uses no preferred stock in its capital structure. Click on the follo Omni Products Co. total lever 2.28 2.93 1.98 DOL DFL DTL 9. Calculating the degrees of leverage Omni Products Co. forecasts the following income statement for the next year: Income Statement For the Year Ended on December 31 Net sales Less: Variable costs $960,000 532,000 115,000 Less: Fixed costs EBIT, or NOI $313,000 206,000 Less: Interest EBT $107,000 Less 42,800 3.63 Net $64,200 3.72 3.93 Omni Prod total lever 3.45 uses no preferred stock in its capital structure. Click on the following i Omni Products Co. 3.82 4.00 DOL DFL 3.54 DTL

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fiduciary Finance Investment Funds And The Crisis In Financial Markets

Authors: Martin Gold

1st Edition

1848448953, 9781848448957

More Books

Students also viewed these Finance questions

Question

What are the different techniques used in decision making?

Answered: 1 week ago