Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need C,D,E,F 2013.com This Question: pts tegrative and prediction Carina Fase tem a terrine busted that whes for $6.00. Each tatch has viable operating costs

Need C,D,E,F image text in transcribed
image text in transcribed
2013.com This Question: pts tegrative and prediction Carina Fase tem a terrine busted that whes for $6.00. Each tatch has viable operating costs $30perating costs are $50.000 per year. The may 563.000 end preluat dividen oy por you. Althout the fining 30.000 ich per you and med at a rate of 10% Carina Farben Onthou arts 30.000 per year den fred and condite sealt and carings avalatle for common ockhoor (EACS) was degree of severe & Congresoweverage Come of the DTL) Cow Parafas entre come produce and need to 15.000 other in the coming you DOLDFL, and Dr. Orlando The heroen EBIT and eamnge state to common Crack your work on Caring for the formationen The degree of Hand in vedecimal) Cursdreww Her we were and was on taal 1.000 times in the comment parceria como as we have to three decomal proceny There I be pod mostom.) The two or more The partage sharpening te or common carolidots wat be 17.30 Count as tree decat place The war wohin wit 22:44 Round to the dar) Dways won by loto Carattere dinge water tamen in the tanimation or EST Enter any series and then to the entition set Integrative-Multiple leverage measures and prediction Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.00. Each latch has variable operating costs of $3.50. Fixed operating costs are $50,000 per year. The firm pays $13,000 interest and preferred dividends of $7,000 per year. At this point, the firm is selling 30,000 latches per year and is taxed at a rate of 40%. a. Calculate Carolina Fastener's operating breakeven point. b. On the basis of the firm's current sales of 30,000 units per year and its interest and preferred dividend costs, calculate its EBIT and earnings available for common stockholders (EACS). c. Calculate the firm's degree of operating leverage (DOL). d. Calculate the firm's degree of financial leverage (DFL). e. Calculate the firm's degree of total leverage (DTL). f. Carolina Fastener has entered into a contract to produce and sell an additional 15,000 latches in the coming year. Use the DOL, DFL, and DTL to predict and calculate the changes in EBIT and earnings available for common. Check your work by a simple calculation of Carolina Fastener's EBIT and earnings available for common, using the basic information given. a. Carolina Fastener's operating breakeven point is 20,000 units. (Round to the nearest integer) b. The firm's EBIT is $ 25,000. (Round to the nearest dollar.) Calculate the earnings available for common below: (Round to the nearest dollar.) EBIT $ Less: Interest expense EBT S 25,000 13,000 12.000 4,800 7,200 Less: Taxes (40%) Net profits Drefarrer stark duldert $ 7000 TI Enter any number in the edit fields and then continue to the next question. 2013.com This Question: pts tegrative and prediction Carina Fase tem a terrine busted that whes for $6.00. Each tatch has viable operating costs $30perating costs are $50.000 per year. The may 563.000 end preluat dividen oy por you. Althout the fining 30.000 ich per you and med at a rate of 10% Carina Farben Onthou arts 30.000 per year den fred and condite sealt and carings avalatle for common ockhoor (EACS) was degree of severe & Congresoweverage Come of the DTL) Cow Parafas entre come produce and need to 15.000 other in the coming you DOLDFL, and Dr. Orlando The heroen EBIT and eamnge state to common Crack your work on Caring for the formationen The degree of Hand in vedecimal) Cursdreww Her we were and was on taal 1.000 times in the comment parceria como as we have to three decomal proceny There I be pod mostom.) The two or more The partage sharpening te or common carolidots wat be 17.30 Count as tree decat place The war wohin wit 22:44 Round to the dar) Dways won by loto Carattere dinge water tamen in the tanimation or EST Enter any series and then to the entition set Integrative-Multiple leverage measures and prediction Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.00. Each latch has variable operating costs of $3.50. Fixed operating costs are $50,000 per year. The firm pays $13,000 interest and preferred dividends of $7,000 per year. At this point, the firm is selling 30,000 latches per year and is taxed at a rate of 40%. a. Calculate Carolina Fastener's operating breakeven point. b. On the basis of the firm's current sales of 30,000 units per year and its interest and preferred dividend costs, calculate its EBIT and earnings available for common stockholders (EACS). c. Calculate the firm's degree of operating leverage (DOL). d. Calculate the firm's degree of financial leverage (DFL). e. Calculate the firm's degree of total leverage (DTL). f. Carolina Fastener has entered into a contract to produce and sell an additional 15,000 latches in the coming year. Use the DOL, DFL, and DTL to predict and calculate the changes in EBIT and earnings available for common. Check your work by a simple calculation of Carolina Fastener's EBIT and earnings available for common, using the basic information given. a. Carolina Fastener's operating breakeven point is 20,000 units. (Round to the nearest integer) b. The firm's EBIT is $ 25,000. (Round to the nearest dollar.) Calculate the earnings available for common below: (Round to the nearest dollar.) EBIT $ Less: Interest expense EBT S 25,000 13,000 12.000 4,800 7,200 Less: Taxes (40%) Net profits Drefarrer stark duldert $ 7000 TI Enter any number in the edit fields and then continue to the next

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

Introduction To Financial Models For Management And Planning

Authors: James R Morris, John P Daley

2nd Edition

1498765041, 9781498765046

More Books

Students also viewed these Finance questions

Question

=+What are the states of nature?

Answered: 1 week ago

Question

=+vii. Bullet points to emphasize important ideas.

Answered: 1 week ago