Question
Answer Fast Please (No Need for details step just the results) Tala is preparing the financial leverage report to be presented to the board. Given
Answer Fast Please (No Need for details step just the results)
Tala is preparing the financial leverage report to be presented to the board.
Given the below information, assess the leverages to help Tala sending her recommendations to the board.
Q | 8,640 | units |
Price | 86 | $ per unit |
Variable costs = | 36 | $ per unit |
Fixed Costs | 86,400 | $ per year. |
Interest | 24,000 | $ per year. |
EBIT | 172,800 | $ for the year |
Answer 1: The Degree of Operating Leverage (DOL) of the company is
Answer 2: The degree of Financial Leverage (DFL) of the company is
Answer 3: The degree of Combined Leverage (DCL) of the company is
Answer 4: When the sales in the company change 1%, then EBIT will change (%)
Answer 5: When EBIT changes 1% in, Earnings Per Share will change (%)
Answer 6:When sales change 1%, Earnings Per Share will change (%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started