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9. Parts of financial records for Company XYZ are: Anticipated sales $400.000 Degree of financial leverage=4/3 Variable cost $200,000 Combined leverage effect 2 Quantity sold
9. Parts of financial records for Company XYZ are: Anticipated sales $400.000 Degree of financial leverage=4/3 Variable cost $200,000 Combined leverage effect 2 Quantity sold $100,000 units Profit margin= 5% Total debt = $200,000 Leverage ratio 1/2 Common stock outstanding 10,000 shares Current price per share-$40 Retention rate 1/2 IRR 8% Calculate the following: (a) The total interest expense. (b) The total fixed cost. (c) The degree of operating leverage. (d) The break-even quantity. (e) The EAIT (f) Total corporation income tax expense. (g) The return on net worth (h) The return on total asset. (i) The EPS G) The P/E ratio for common stock. (k) The pay-out ratio for dividend. 1) The growth rate for the common stock. (m) The required rate-of-return. (n) Total asset turnover. (o) Analyze the financial situation of Company XYZ (p) If the probabilistic concepts are applied to break-even analysis, how should the analyses in (o) be revised
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