What is new degree of operating leverage

Assignment Help Financial Management
Reference no: EM131562610

At an output level of 83,000 units, you calculate that the degree of operating leverage is 3.00. Suppose fixed costs are $140,000. What is the operating cash flow at 77,000 units? (Do not round intermediate calculations and round your final answer to the nearest whole number, e.g., 32.)

Operating cash flow $

What is the new degree of operating leverage? (Do not round intermediate calculations and round your final answer to 3 decimal places, e.g., 32.161.)

Degree of operating leverage

Reference no: EM131562610

Questions Cloud

When a firm is negotiating loan from its bank : how might a cah budget be used when a firm is negotiating a loan from its bank?
Decides to issue new common stock : If KayCee decides to issue new common stock, flotation costs will equal $4.00 per share. KayCee's marginal tax rate is 35%.
The capital intensity ratio is generally defined as follows : The capital intensity ratio is generally defined as follows:
What is the component cost of common equity for the firm : What is the before tax component cost of debt for the firm? What is the component cost of common equity for the firm?
What is new degree of operating leverage : What is the new degree of operating leverage? What is the operating cash flow at 77,000 units?
Loan agreement with the bank and begin taking the? discount : Should Simple? Simon's enter the loan agreement with the bank and begin taking the? discount?
Will brian be successful in his claims against dr james : Will Brian be successful in his claims against Dr. James? Will Kara be successful in her claims against Dr. Morgan?
Production management for construction : Production Management for Construction - importance of effective communication in planning and resources management
Calculate best-case and worst-case npv figures : We are evaluating a project that costs $1,120,000, has a ten-year life, and has no salvage value. Calculate the best-case and worst-case NPV figures.

Reviews

Write a Review

Financial Management Questions & Answers

  Compounded continuously compared to monthly

You make monthly deposits of $310 into an account that pays 3% per year. How much larger would the balance be after 5 years if interest is compounded continuous

  What is the maximum she should be willing to pay

Consider Mirage, Inc., a firm that specializes in difficult-to-see processes. What is the maximum she should be willing to pay?

  Ratio analysis involves analyzing financial statements

Ratio analysis involves analyzing financial statements in order to appraise a firm's financial position and strength. A stock with a beta equal to -1.0 has zero systematic (or market) risk.

  What did the video card cost

Gary is building a computer for a customer. Of the money he spent on parts, 20% went into buying the video card. If the rest of the computer cost $650, what did the video card cost?

  A company wishes to determine if the average salary

A company wishes to determine if the average salary of its clerks is really $340. The company researcher takes a sample of 64 clerks and finds that =$300 and s = $80.

  Calculate the annual net cash flows for the project

International Foods Corporation (IFC) currently processes seafood with a unit it purchased several years ago. The unit, which originally cost $500,000, currently has a book value of $250,000. IFC is considering replacing the existing unit with a newe..

  Equal amounts of low-risk-average-risk-high-risk projects

The Nunnally Company has equal amounts of low-risk, average-risk, and high-risk projects. Nunnally estimates that its overall WACC is 12%. The CFO believes that this is the correct WACC for the company's average-risk projects, but that a lower rate s..

  What is the current market value of its equity

If Acort is unlevered, what is the current market value of its equity? What is the expected return of Acort's equity without leverage?

  What is the value of rolens preferred stock

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 10% of its $100 par value. Preferred stock of this type currently yields 8%. Assume dividends are paid annually. What is the value of Rolen's preferred stock?

  About the efficiency analysis

(Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits /sales) of 25 percent and sales of $9.5 million last year. 74 percent of the firm’s sales are on credit, and the remainder is cash sales. Brenmar’s current asset..

  What is the future value in the account after seven? years

What is the future value in the account after seven? years?

  What is the yield to maturity-what is the yield to call

It is now January 1, 2014, and you are considering the purchase of an outstanding bond that was issued on January 1, 2012. It has a 8.5% annual coupon and had a 15-year original maturity. (It matures on December 31, 2026.) There is 5 years of call pr..

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