Firms degree of accounting operating leverage

Assignment Help Financial Management
Reference no: EM131067164

Synthgration has a degree of pretax cash flow operating leverage equal to 1.266. If the firm's EBITDA was $1,500 last year while its depreciation and amortization expense was $100 in the same year, then what was the firm's degree of accounting operating leverage?

Reference no: EM131067164

Questions Cloud

Whether the number of student enrolments at remote schools : Use an appropriate hypothesis test to determine whether the number of student enrolments at very remote schools in 2014 was a useful predictor of the number of teaching staff
Side of the body in one of patients : You are a neurologist and perform a patellar reflex on each side of the body in one of your patients. You notice that the left side reflex doesn't work. The patient can feel a gentle sweeping motion on the thigh in both legs, cannot voluntarily..
Compute the bonds current yield-yield to maturity : A 5.25% coupon municipal bond has 16 years left to maturity and has a price quote of 96.75. The bond can be called in 6 years. The call premium is one year of coupon payments. Compute the bond's current yield, yield to maturity, taxable equivalent yi..
How many parts need to be made each month to break even : The cost of machinery for a project is $400,000. Expected life of the equipment is 4 years with a 10% salvage. direct labor is $30 per hour. The production rate is 15 parts per hour. Direct material is $12.37 per unit. how many parts need to be made ..
Firms degree of accounting operating leverage : Synthgration has a degree of pretax cash flow operating leverage equal to 1.266. If the firm's EBITDA was $1,500 last year while its depreciation and amortization expense was $100 in the same year, then what was the firm's degree of accounting operat..
Suppose the average return on an asset : Suppose the average return on an asset is 12.1 percent and the standard deviation is 20.6 percent. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to determine the probability that in any given year you w..
An asset has had an arithmetic return : An asset has had an arithmetic return of 10.9 percent and a geometric return of 8.9 percent over the last 88 years. What return would you estimate for this asset over the next 8 years? 22 years? 29 years? Enter as percentages.
Risk-free interest rate is annum with continuous compounding : A stock price is currently $50. Over each of the next two six-month periods it is expected to go up by 15% or down by 10%. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a one year European put option wi..
Vertically common size apples income statements : Your Activity responses should be both grammatically and mechanically correct and formatted in the same fashion as the Adionty itself. If there is a Part A.

Reviews

Write a Review

Financial Management Questions & Answers

  What are the expected current and capital gains yields

Hooper Printing Inc. has bonds outstanding with 14 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value $1000. However, due to changes in interest rates, the bond's market price has fallen $120..

  Reward-to-risk ratios for stocks

Stock Y has a beta of 1.6 and an expected return of 16.6 percent. Stock Z has a beta of .8 and an expected return of 9.4 percent. If the risk-free rate is 5.1 percent and the market risk premium is 6.6 percent, the reward-to-risk ratios for stocks Y ..

  Who might be a good prospect for a private jet if you were

1. who might be a good prospect for a private jet? if you were a salesperson for such aircraft how would you go about

  What is your estimate of intrinsic value per share

The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next 5 years. Its latest EPS was $16, all of which was reinvested in the company. which it will continue to do forever after. D..

  What is its expected return of company

Your financial plan tells you that you desire investments that have the potential to return 7%. Suppose the risk-free return is 3% and the market portfolio has an expected return of 7% and a standard deviation of 9.6%. Company A stock has a beta of 0..

  Required return on stock-what is the current share price

Bui Corp. pays a constant $14.60 dividend on its stock. The company will maintain this dividend for the next nine years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price?

  Pension plan is obligated to make disbursements

A pension plan is obligated to make disbursements of $1.7 million, $2.7 million, and $1.7 million at the end of each of the next three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how..

  Extensive consumer decision making process

What happens if a consumer purchases a product that does not live up to his expectations following an extensive consumer decision making process?

  What is your payoff per contract is the stock price

You have written a put option on XYZ Corporation common stock. The option has an exercise price of $22.3 and an option premium of $1.94 per share. What is your payoff per contract is the stock price is $40 at expiration?

  What is maximum annual lease wolfson would be willing to pay

Wolfson Corporation has decided to purchase a new machine that costs $4.5 million. The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 30 percent.  What is the NAL of leasing for ..

  Requirement of the two-stage dividend growth model

Which one of the following is a requirement of the two-stage dividend growth model? Which one of the following statements concerning beta is correct? Main Street Antiques is planning on paying an annual dividend of $2.20 per share next year. The comp..

  What is pharmecologys current stock price

Pharmecology is about to pay a dividend of $1.65 per share. It’s a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 4.25% per year. The nominal cost of capital is 11.00%. What is Pharmecology’s ..

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