What is its degree of operating leverage dol

Assignment Help Accounting Basics
Reference no: EM13840084

  1. Finance Corp has fixed costs of $7 million and profits of $4 million. What is its degree of operating leverage (DOL)?
  2. Choose an industry and identify the factors that will determine its performance in the next three years. What is your forecast for performance in that time period?

Reference no: EM13840084

Questions Cloud

Obtain specific performance under uniform commercial code : When nonbreaching buyers or lessees obtain specific performance under the Uniform Commercial Code (UCC), the sellers or lessors
Cash inflows and outflows from purchasing the equipment : A firm wants the use of a machine that costs $100,000. If the firm purchases the equipment it will depreciate the equipment at the rate of $20,000 a year for four years, at which time the equipment will have a residual value of $20,000. Maintenance w..
What is typically true of corporate dividend payout rates : What is typically true of corporate dividend payout rates in the early stages of an indus- try life cycle? Why does this make sense? If the nominal interest rate is 5% and the inflation rate is 3%, then what is the real interest rate?
A three-month call option is the right to buy stock : A three-month call option is the right to buy stock at $20. Currently the stock is selling for $22 and the call is selling for $5. You are considering buying 100 shares of the stock ($2,200) or one call option ($500). a) If the price of the stock ris..
What is its degree of operating leverage dol : Finance Corp has fixed costs of $7 million and profits of $4 million. What is its degree of operating leverage (DOL)? Choose an industry and identify the factors that will determine its performance in the next three years. What is your forecast for p..
What is the current share price : Apocalyptica Corp. pays a constant $8.50 dividend on its stock.  The company will maintain this dividend for the next 11 years and will then cease paying dividends forever.  If the required return on this stock is 12 percent, what is the current shar..
Compute the overhead cost attributable to the office : Compute the overhead cost attributable to the Office Mart orders - Determine the customer margin for the OfficeMart orders under Activity-Based Costing
What will the price be in three years : The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.45 per share on its stock.  The dividends are expected to grow at a constant rate of 6 percent per year indefinitely.  If investors require a return of 11 percent on The Jackson-Timberlak..
The jackson-timberlake wardrobe co : The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.45 per share on its stock.  The dividends are expected to grow at a constant rate of 6 percent per year indefinitely.  If investors require a return of 11 percent on The Jackson-Timberlak..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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