Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve the 2 questions. A company, expects sell 30000 units of its products. It will sell its product for $120 and its variable cost

please solve the 2 questions. image text in transcribed
image text in transcribed
A company, expects sell 30000 units of its products. It will sell its product for $120 and its variable cost is $70. It has fixed cost of $8000 it has a US$35,000 bond with a 10 percent (annual coupon rate of interest and an issue of 1200 shares of US$3 (annual dividend per share) preferred stock outstanding. It also has 5.000 shares of common stock outstanding. If the firm is in the 40 percent tax bracket, then its degree of total leverage (DTU) a: 0.988 1.013 D1011 d. 1000 Question 8 Not yet answered Marked out of 3.00 P Flag question A company, expects sell 55000 units of its products, It will sell its product for $190 and its variable cost is $60. It has fixed cost of $12000 It has a US$35,000 bond with a 10 percent (annual) coupon rate of interest and an issue of 4000 shares of US$4 (annual dividend per share) preferred stock outstanding. It also has 5,000 shares of common stock outstanding. If the firm is in the 40 percent tax bracket, then its degree of total leverage (DTL): a. 1.004 O b. 1.003 O c. 0.994 O d. 1.005

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

Students also viewed these Accounting questions