### Determine the firm degree of operating leverage

Assignment Help Finance Basics
##### Reference no: EM13303589

a) If I collect my accounts receivables every 38 days, pay my accounts payable every 35 days, and my inventory turns over 8.4 times per year, what is my cash conversion cycle?

b) A firm has fixed operating costs of \$175,000, total sales revenue of \$3,000,000 and total variable costs of \$2,250,000. Determine the firm's degree of operating leverage.

c) Calculating a range, which asset is more risky?

Asset A Asset B

A 14% 16%

B 20% 20%

C 25% 25%

#### Questions Cloud

 How far away from the lens is the image formed : An object 5.00 mm tall is placed 6.00 cm to the left of a converging lens of focal length 20.0 cm. How far away from the lens is the image formed Estimate the optimal debt ratio : Graph the relationship between the coefficient of variation and the debt ratio. Label the areas associated with business risk and financial risk. Determine what is the thermal stress generated in the rod : The ¼" thick 6061?T6 aluminum bar is subjected to a tensile force of P = 5 kips. b = 4"; c = 1.5"; d = 2.5"; and the fillet radii are 1". a) Determine the maximum stress in the bar. b) What is the lateral strain in the 1.5" wide section Find the magetic field produced at the center of this disk : A circular coil consists of 60 turns of wire wound around the rim of a plywood disk of radius .15 m. what is the magetic field produced at the center of this disk Determine the firm degree of operating leverage : If I collect my accounts receivables every 38 days, pay my accounts payable every 35 days, and my inventory turns over 8.4 times per year, what is my cash conversion cycle? Determine the specific heat of the block : The specific heat of a 100-g block of a substance is to be determined.The block is placed in a 25-g copper calorimeter holding 60 g of water at 20°C. Determine the specific heat of the block What is the learning curve represented by the data : What is the learning curve represented by the data in the unit learning curve table - What is the correct amount to include in your budget request for this project? Determine the allowable force f that may be applied : If the allowable shear stress in the 7/8" diameter bolt is 35 ksi, determine the allowable force F that may be applied. What is the initial investment : If the assumed tax rate is 40 percent on ordinary income and capital gains, what is the initial investment?

### Write a Review

#### Determine the present value of this 5 year forecast period

However, competitive pressures and increased costs are expected to shrink margins to 11% in years 4 and 5.

#### In how many years should the new bond mature

Both bonds are bought to yield % nominal interest convertible semiannually. In how many years should the new bond mature?

#### Determine whether a bank has adequate capital

Explain how the value at risk (VaR) method can be used to determine whether a bank has adequate capital.

#### What is one share of this stock worth to you today

The James Clothing Co. pays a constant annual dividend of \$3.90 per share. What is one share of this stock worth to you today if you require a 26 percent rate of return.

#### Hypothesis testing to analyze the same set of data

Hypothesis testing to analyze the same set of data.

#### What is the payback period for this project

Binder Corp. has invested in new machinery at a cost of \$1,450,000. This investment is expected to produce cash flows of \$640,000, \$715,250, \$823,330, and \$907,125 over the next four years. What is the payback period for this project?

#### What is the reduction in outstanding cash balances

What is the daily dollar return that could be earned on these savings? (Round your answer to 2 decimal places. (e.g., 32.16))

#### What will be the current value of a single share

Spacefood Products will pay a dividend of \$2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cos..

#### Calculating the effective interest rate

William Miklo is opening a new business and the bank will not give him a loan without a 20% compensating balance account.

#### How large will the last deposit be

How large will the last deposit be? Round your answer to the nearest cent.

#### Determining firm-s expected free cash flow to equity

Determine the firm’s expected free cash flow to equity (FCFE) per share next year under these suppositions?

#### Calculate current monthly volume

When Molly Lai purchased the Clean Clothes Corner Laundry, she thought that because it was in a good location near several high income neighborhoods, she would automatically generate good business if she improved the laundry's physical appearance.