Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 03, 2024

Company B has an operating profit (EBIT) of 100. It has interest payable of 20. What is the degree of financial gearing?

Company B has an operating profit (EBIT) of £100. It has interest payable of £20. What is the degree of financial gearing?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The term you might be looking for is the degree of financial leverage DFL not the degree of financia... 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

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

Recommended Textbook for

Principles of Finance

Authors: Scott Besley, Eugene F. Brigham

6th edition

9781305178045, 1285429648, 1305178041, 978-1285429649

More Books

Students also viewed these Accounting questions

Question

cck3 java help them all If a processor exhibited one branch delay slot how would you reorder (and possibly modify) the instructions in the following loop to gain a performance advantage? loop ldr...

Answered: 1 week ago

Question

Question 2 (25 Marks) The case study mentions automation as a risk mitigating option. Using an appropriate diagram, propose how a manual ordering and receiving can be automated? Question 3 The case...

Answered: 1 week ago

Question

★★★★★

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Answered: 1 week ago

Question

★★★★★

The electron in a hydrogen atom is typically found at a distance of about 5.3 10-11 m from the nucleus, which has a diameter of about 1.0 10-15 m. If you assume the hydrogen atom to be a sphere of...

Answered: 1 week ago

Question

★★★★★

Describe at least three systematic errors that might occur while weighing a solid on an analytical balance.

Answered: 1 week ago

Question

★★★★★

Explain the effects that transactions involving stockholders equity have on the statement of cash fl ows. AppendixLO1

Answered: 1 week ago

Question

★★★★★

5. What is the person thinking and feeling while engaged in the activity? Is the student enjoying Shakespeare, feeling competent, or experiencing anxiety about an upcoming test (Anderman & Anderman,...

Answered: 1 week ago

Question

★★★★★

Information about the domestic and foreign operations of Radon Inc. is as follows: Required Prepare schedules showing appropriate tests to determine which countries are material using a10 percent...

Answered: 1 week ago

Question

★★★★★

Bank of America faces the following inflows and outflows during the coming month: 1. deposit withdrawals of $33 million 2. Customer loan repayments of $2016 million 3. sales of assets $36 million 4....

Answered: 1 week ago

Question

★★★★★

You have recently started work as a management accountant at Zilber Hotels, reporting to the financial controller. Draft management accounts have been prepared for the year just finished, and the...

Answered: 1 week ago

Question

★★★★★

Janet is the purchasing agent at Frameco Manufacturing. Her duties include vendor selection and ordering materials. Due to a recent economic downturn and resulting cut backs, Janet has been assigned...

Answered: 1 week ago

Question

★★★★★

[The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Accounts receivable Percent uncollectible...

Answered: 1 week ago

Question

★★★★★

Required The Foundational 15 (Algo) [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, LO1-6] [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is...

Answered: 1 week ago

Question

★★★★★

You select a sample of students in the MSDS program and find that the mean age is 31. Suppose the mean age of the MSDS student population is 33. Which number is a statistic? Question 19 options: The...

Answered: 1 week ago

Question

★★★★★

b) Sum Array values that are below a specified value Implement the following C++ code in assembly language in Visual Studio (MASM Assemble program), using the block-structured .IF and .WHILE...

Answered: 1 week ago

Question

★★★★★

1. AC function declared as void pp (int "p) { } is compiled to the MIPS code on the right. Write the C code that performs the same operation as the MIPS code labeled 'pp' to the right in no more than...

Answered: 1 week ago

Question

★★★★★

As the newly appointed financial analyst for Coverdale Office Machines Ltd., you have been asked to evaluate two alternative capital investment opportunities. The companys corporate income tax rate...

Answered: 1 week ago

Question

★★★★★

XYZ Inc. a calendar year, accrual basis corporation, had the following items during 2021: Gross revenue from operations Cost of goods sold $420,000 ($180,000) $9,000 LT capital gain .LT capital...

Answered: 1 week ago

Question

★★★★★

Stocks X and Y have the following probability distributions of expected future returns: a. Calculate the expected rate of return for Stock Y, rY (rX = 12%). b. Calculate the standard deviation of...

Answered: 1 week ago

Question

★★★★★

The First City Bank pays 7 percent interest, compounded annually, on time deposits. The Second City Bank pays 6.5 percent interest, compounded quarterly. a. Based on effective interest rates, in...

Answered: 1 week ago

Question

★★★★★

Magnificent Metal Mining (MMM) expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year. If MMMs capital structure consists of 25 percent debt and 75...

Answered: 1 week ago

Question

★★★★★

In 2000, the Journal of the American Medical Association (JAMA) published a study that examined pregnancies that resulted in the birth of twins. Births were classified as preterm with intervention...

Answered: 1 week ago

Question

★★★★★

A company held a blood pressure screening clinic for its employees. The results are summarized in the table below by age group and blood pressure level: a) Find the marginal distribution of blood...

Answered: 1 week ago

Question

★★★★★

The Chance magazine article described in Exercise 15 further examined the impact of an applicant's ethnicity on the likelihood of admission to the Houston Independent School District's magnet schools...

Answered: 1 week ago

Previous Question Next Question