The relationship between operating and financial leverage

Assignment Help Finance Basics
Reference no: EM13286412

1.Given the following statement, please indicate whether it is true or false, and why: "The relationship between operating and financial leverage is additive rather than multiplicative" (Limit your answer to less than 100 words)

2.Tangshan Mining has 100,000 shares outstanding and just declared a 20% stock dividend. Before the announcement, the firm's shares were trading at $50.00 per share. After the stock dividend, the firm's shares should trade at ________ per share. (Please calculate the arithmetic solution and show your work)

 

Reference no: EM13286412

Questions Cloud

Find variation in duty cycle required to speed variation : The motor details are as follows: 1 hp, 10V, 2500 rpm, 78.5 % efficiency, Ra=.01 O, La=.002 H, Kb= .03819 V/rad/sec. The chopper is one quadrant, and the on-state voltage drop across the device is assumed to be 1V regardless of the current variati..
Explain the ph of a solution resulting from the dissolution : What is the pH of a solution resulting from the dissolution of 2.09 g of NH4Br in water to form 0.371 L of solution
Find the average energy density : The rms value of the electric field in an electromagnetic wave is Erms = 480 V/m. Find the average energy density
Identify 2 common misconceptions about risk management : Identify 2 common misconceptions about risk management and explain why these misconceptions develop.
The relationship between operating and financial leverage : Given the following statement, please indicate whether it is true or false, and why: "The relationship between operating and financial leverage is additive rather than multiplicative"
Explain the percentage deprotonation of the cation : A 9.1 g sample of C6H5NH3Cl is dissolved in water to make 346 mL of solution. Determine the percentage deprotonation of the cation.
What is the vertical height between the two climbers : A rock climber throws a small first aid kit to another climber who is higher up the mountain. What is the vertical height between the two climbers
How step responses of the two systems are identical : Consider the step responses of two different imaging systems, one with a circular aperture of diameter 2ω and the second with a square aperture of width 2ω, with one edge of the aperture parallel with the edge of the step.
Explain a polymer in which some of the first h atoms : Some watch dials are coated with a phosphor, like ZnS , and a polymer in which some of the first H atoms have been replaced by third H atoms, tritium.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What is the standard deviation of a portfolio of two stocks

What is the standard deviation of a portfolio of two stocks given the following data: Stock A has a standard deviation of 18%. Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A, and the correlation coefficient between ..

  What was the company operating income

New Mexico Lumber recently reported that its earnings per share were $ 5 .00. The company has 6 00,000 shares of stock outstanding. The company's interest expense was $ 3 00,000. The corporate tax rate is 40 percent. What was the company's operati..

  Compute the percentage total return

Suppose a stock had an initial price of $88 per share, paid a dividend of $2.10 per share during the year, and had an ending share price of $77.

  Calculate the value of a bond that expects to mature

Calculate the value of a bond that expects to mature in 10 years and has a $1000 face value. The coupon interest rate is 12% that paid semiannually and the investor's required rate of return is 20%.

  Explain questions on investments and transfer pricing

Explain questions on investments and transfer pricing and capital budgeting and One criticism of the payback method is that it ignores cash flows that occur after the payback point has been reached

  Us recent gdp results and trends

Recommend a strategy for enhancing U.S. GDP over the next five years. Give support for your recommendation. Predict the federal fund rate over next five years, indicating the likely impact on financial markets. Provide support for your rationale.

  Problem regarding the time value of money

Smolinski company is considering an investment which will return a lump sum of $5000,000 five years from now. What amount should simolinski company pay for this investment to earn a 15% return.

  Find company stocks current price

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5 percent, and the expected constant growth rate is g = 6.4 percent.

  Objective question based on finance

Tangshan Mining has common stock at par of $200,000, paid in capital in excess of par of $400,000, and retained earnings of $280,000.

  Firm current earnings per share

Calculate the firm's current earnings per share (EPS) and price/earnings (P/E) ratio-Compare and contrast the stockholders' position under the dividend and repurchase alternatives

  Levered equity calculation

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely.

  What is the holding period return for your portfolio

Today stock is selling at $29.5 per share and bond is quoted as 99.2. What is the holding period return for your portfolio?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd