The new degree of operating leverage for output levels

Assignment Help Financial Management
Reference no: EM131623651

At an output level of 16,000 units, you have calculated that the degree of operating leverage is 3.30. The operating cash flow $63,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for output levels of 17,000 units and 15,000 units? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

Reference no: EM131623651

Questions Cloud

Use dividend discount model-weighted average cost of capital : Calculate the company's weighted average cost of capital. Use the dividend discount model.
What is the growth rate of the stock with : Stock. What is the growth rate of the stock with a
What is the house value on down mortgage with payments : What is the house value (critical thinking required) on a 20 percent down mortgage with payments of
What is the present value of your inheritance : You could invest that money today at 10% compounded semi-annually. What is the present value of your inheritance?
The new degree of operating leverage for output levels : hat will be the new degree of operating leverage for output levels of 17,000 units and 15,000 units?
What is the break-even probability of default in part : What is the break-even probability of default in part (a)? Describe in general terms why credit terms will be more liberal when repeat orders are a possibility.
What interest rate applies to the payment : what interest rate applies to the payment due in June 2019?
Firm current market value is their target capital structure : Assume that the firm's current market value is their target capital structure, what is the firm's WACC?
The principal repayment the first year is : A fully amortized bond has a maturity of 5 years, The principal repayment the first year is:

Reviews

Write a Review

Financial Management Questions & Answers

  Rate of return from capital appreciation during the year

Francis purchased a stock one year ago for $20, and it is now worth $24. The stock paid a dividend of $3 during the year. What was the stock's rate of return from capital appreciation during the year?

  About the deposit scheme

Suppose you deposit $8,000 in 3 years, $3,000 in 6 years, and $9,000 in 8 years. How much will you have in your account after 8 years if the account earns 3% compounded annually?

  Calculate an actuarially fair insurance premium

Calculate an actuarially fair insurance premium. What would your expected utility be were you to purchase the actuarially fair insurance premium?

  Considering making a movie

You are considering making movie. The movie is expected to cost $10.9 million upfront and take year to make.

  Tax rate would investor be indifferent between two bonds

Corporate bonds issued by Johnson Corporation currently yield 12%. Municipal bonds of equal risk currently yield 7%. At what tax rate would an investor be indifferent between these two bonds?

  What is the required return on the companys stock

Bruer, Inc., is expected to maintain a constant 6.05 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.55 percent, what is the required return on the company’s stock?

  What is the annual net operating income

Office expenses are $38 per square foot and an expense stop is set at $20 per square foot. What is the annual net operating income?

  Calculate the value of your savings at end of three years

You plan to save $500 at the end of each month for the next 2 years. With the expectation of a pay raise, you want to save $850 at the end of each month for 1 year after that. Assuming an interest rate of 1.5% per annum throughout the period of calcu..

  What is the value of a share of common stock

Diana Ltd. paid a $2.50 per share dividend yesterday. The dividend is expected to grow at 10 percent per year for the foreseeable future. Diana Ltd. has a beta of 1.6, a standard deviation of returns of 30 percent, and a required return of 18%. What ..

  What amount must this person now commit to the membership

What amount must this person now commit to the membership?

  What is the effective interest rate on the loan

What is the effective interest rate on the loan?

  Global sales are generally dollar denominated

Apple, whose global sales are generally dollar denominated, finds it has excess cash of $175,000,000,000, which it can invest for up to three years. Assume that the annual interest amount is reinvested, i.e. compounds, at the same annual interest rat..

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