What is luxury’s degree of financial leverage (dfl)

Assignment Help Finance Basics

Reference no: EM131393908

Luxury Leisure's forecasted EBIT is $750,000. This year, Luxury will pay $250,000 interest on its debt and $320,000 dividends to its common stockholders. If its marginal tax rate is 40 percent, what is Luxury's degree of financial leverage (DFL)?

Reference no: EM131393908

Questions Cloud

Calculate and interpret value of correlation coefficient : Calculate and interpret the value of the correlation coefficient between sale price and size (consider to use some software for the calculation)

Write a research paper on change in a hrd organization : For the final assignment of this course, you will write a research paper on change in a human resource development (HRD) organization that you work for, or would like to work for.

Discuss about the schedules of reinforcement : Mrs. Blass is tired of her students not being prepared for class each day. She knows that they are hard-working seniors who value getting an A in the class, and she wants to set up a schedule of work so they study hard and consistently. She schedu..

Construct a spreadsheet to calculate the payback period : Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine.

What is luxury’s degree of financial leverage (dfl) : Luxury Leisure's forecasted EBIT is $750,000. This year, Luxury will pay $250,000 interest on its debt and $320,000 dividends to its common stockholders. If its marginal tax rate is 40 percent, what is Luxury's degree of financial leverage (DFL)?

What recommendation would you make to stanley : What recommendation would you make to Stanley regarding hiring a new software developer? Relate your recommendation here to your responses in part a.

What is the expected payoff of the put at maturity : What is the expected payoff of the put at maturity? Calculate the current put price by discounting the average future put payoff (its expected value) to the present at the risk-free rate: Put0 = exp(-rf ⋅ t) ⋅ Expected Future Put Value.

Choose a target behavior for your self-management project : You will be completing a self-management project in, and your topic needs to be approved by your instructor to ensure it is behavioral, measurable, and objectively defined. Doing so ensures that you select an appropriate topic but also gets you th..

What is muddy’s degree of operating leverage (dol) : Muddy Murphy's degree of financial leverage (DFL) is 4×. The company knows that if sales are 6 percent higher than forecasted, its EPS will increase by 36 percent. What is Muddy's degree of operating leverage (DOL)?

User Account

All Pages