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Hey there, I was wondering If anyone could help me with these intro finance homework questions before 11 pm? Complete the following table by identifying

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Hey there, I was wondering If anyone could help me with these intro finance homework questions before 11 pm?

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Complete the following table by identifying the correct formula and completing the interpretative statement. Degree of operating leverage {DDL} Formula |:| Interpretation An index for a of sales that measures the effect of a change in sales {5} on the firm's operating income {EBIT}. Alternatively, it is an indicator of the riskiness {variability} of a firm's EBlT to the use of fixed costs {F} in the firm's cost structure. Degree of nanu'al leverage {DF L} |:| Interpretation An index for a specic range of sales that measures the effect of a change in EBlT on a firm's earnings per share {EPE}. At a constant level of sales. the DFL value will vary with a change in the amount of interest expense {I} incurred. This implies that the DFL is an indicator of a firm's risk. Degree of total leverage {DTL} |:| Interpretation An index of the firm's total risk resulting from its use of operating and financial leverage. Stated differently. it is an indicator of the consequences for the firm's EPS for its use of operating and financing costs. Compare the income statements of Sleepy Futon Inc. and Sweet Oog Manufacturing and calculate the TIE raijo for each firm. Sweet Dag Manufacturing Sleepy Futon Inc. Income Statement Income Statement For the 1I'ear Ended on December 31 For the 1I'ear Ended on December 31 (Mil'ifoos of dol'iars} (Mil'ifoos of dol'iars} Net Sales $500 Net Sales $200 'y'ariable costs 125 'y'ariable costs 280 Fixed costs 225 Fixed costs 245 Total Operating Costs $350 Total Operating Costs $525 Operating Income {or EBIT} 150 Operating Income {or EBIT} 125 Less interest 00 Less interest 60 Earnings before Taxes {EBT} $20 Earnings before Taxes {EBT} $ 115 Less taxes {40%} 28 Less taxes {40%} 45 Net Income $42 Net Income $69 Times Interest Earned {TIE} |:| Times Interest Earned {TIE} |:| Complete the following statement. based on the calculations you have already made. Describe the relationship between the TIE ratios of the two companies. 0 Sleepy Futon Inc. has a greater TIE ratio than Sweet Oog Manufacturing. 0 Sweet Oog Manufacturing has a greater TIE ratio than Sleepy Futon Inc.. 0 The companies have equal TIE raijos. which company is in better position to cover its interest payments, and therefore exhibits lower risk, than the other? 0 Sweet Oog Manufacturing is in a better position to cover its interest payment. 0 Sleepy Futon Inc. is in a better position to cover its interest payment. D Both companies are equally positioned to cover their interest payments. I\"? {if Interest Tax Shields Assume that you are CEO of a firm that is EUITEIILI'jI' worth $2110 million and has no debt in its capitaI structure. There are It] million shareholders, thus, each share is worth $20 per share. You have decided to issue $100 million in debt and use the proceeds to buy.T hack shares of stock. The debt will have a coupon rate of 15%, the corporate tax rate is 35%, and interest pa'jl'Il'lEIltS are taxdeductible. Ifthere are no costs of nancial distress to worry about or transactions costs incurred in the process of issuing debt and buying back shares, what should be the price per share of the remaining shares once you are done with the buyback? E Please enter 2 digits after the deccimaI point

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