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these questions are a part of the same problem please answer both Score: 0 of 7 pts 4 of 5 (0 complete) HW Score: 0%,

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Score: 0 of 7 pts 4 of 5 (0 complete) HW Score: 0%, 0 of 21 pts P12-12 (similar to) Question Help Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $220,000 of 15% (annual interest) debt and 4,000 shares of common stock. The firm pays taxes at the rate of 25%. a. Using EBIT values of $78,000 and $117,000, determine the associated earnings per share (EPS). b. Using $78,000 of EBIT as a base, calculate the degree of financial leverage (DFL). c. Rework parts a and b assuming that the firm has $90,000 of 15% (annual interest) debt and 5,000 shares of common stock. a. Calculate the EPS for EBIT value of $78,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) EBIT $ Less: Interest Net profits before taxes $ Less: Taxes (25%) Net profit after taxes $ EPS (4,000 shares) $ Score: 0 of 8 pts 5 of 5 (0 complete) HW Score: 0%, 0 of 21 pts P12-17 (similar to) Question Help Integrative Multiple leverage measures and prediction Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.21. Each latch has variable operating costs of $3.42. Fixed operating costs are $50,000 per year. The firm pays $13,000 interest and preferred dividends of $6,600 per year. At this point, the firm is selling 34,000 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 34,000 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 14,500 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 units. (Round to the nearest integer.) Score: 0 of 7 pts 4 of 5 (0 complete) HW Score: 0%, 0 of 21 pts P12-12 (similar to) Question Help Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $220,000 of 15% (annual interest) debt and 4,000 shares of common stock. The firm pays taxes at the rate of 25%. a. Using EBIT values of $78,000 and $117,000, determine the associated earnings per share (EPS). b. Using $78,000 of EBIT as a base, calculate the degree of financial leverage (DFL). c. Rework parts a and b assuming that the firm has $90,000 of 15% (annual interest) debt and 5,000 shares of common stock. a. Calculate the EPS for EBIT value of $78,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) EBIT $ Less: Interest Net profits before taxes $ Less: Taxes (25%) Net profit after taxes $ EPS (4,000 shares) $ Score: 0 of 8 pts 5 of 5 (0 complete) HW Score: 0%, 0 of 21 pts P12-17 (similar to) Question Help Integrative Multiple leverage measures and prediction Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.21. Each latch has variable operating costs of $3.42. Fixed operating costs are $50,000 per year. The firm pays $13,000 interest and preferred dividends of $6,600 per year. At this point, the firm is selling 34,000 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 34,000 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 14,500 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 units. (Round to the nearest integer.)

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