What will the percentage change in operating cash flow be

Assignment Help Financial Management

Reference no: EM131056199

At an output level of 50,000 units, you calculate that the degree of operating leverage is 1.60. If output rises to 74,500 units, what will the percentage change in operating cash flow be? (Do not round your intermediate calculations.)

Reference no: EM131056199

Questions Cloud

What is the portfolio beta and required return : An investor has put money in four stocks in the dollar amounts indicated and with betas specified. What is the portfolio beta? Stock A $3,780 with a beta of 1.03; stock B $7,411 with a beta of 1; stock C $5,584 with a beta of 1.03; and stock D $5,895..

What is the ytm-stated on nominal-annual-basis : The current market price of Smith Corporation's 8 percent coupon, 8 year bonds is $1,125.61. An 8% coupon rate is paid semi-annually, and the par value is equal to $1,000. What is the YTM (stated on a nominal, annual, basis) if the bonds mature 8 yea..

Gordon or constant growth dividend discount : If the constant growth ("Gordon" or "Constant Growth Dividend Discount") model is to give a reasonablea valuation of a stock, which of the following is not a valid assumption for the model?

Target debt–equity ratio-annual cash flows : Blue Angel, Inc., a private firm in the holiday gift industry, is considering a new project. The company currently has a target debt–equity ratio of .35, but the industry target debt–equity ratio is .30. The project will be financed at Blue Angel’s ..

What will the percentage change in operating cash flow be : At an output level of 50,000 units, you calculate that the degree of operating leverage is 1.60. If output rises to 74,500 units, what will the percentage change in operating cash flow be? (Do not round your intermediate calculations.)

What are the expected rate of return and standard deviation : Larry Lynch has been working for a year as an analyst for an investment company that specializes in serving very wealthy clients. These clients often purchase shares in closely held investment funds with very limited numbers of stockholders. What are..

If bonds yield to maturity exceeds its coupon rate : If a bond's Yield to Maturity exceeds its coupon rate, the bond's current yield must also exceed its coupon rate. If a bond's Yield to Maturity exceeds its coupon rate, the bond's current market price must also exceed its maturity value. If two bonds..

Calculate or find the WACC for the two firms : The Weighted Average Cost of Capital (WACC) for a firm can be calculated or found through research. Select two firms in the same industry. Calculate or find the WACC for the two firms. How do the WACCs compare? Are the WACCs what you would expect? Wh..

Amortization requires montly payents : A $150000 mortgage at 3.5% compounded semi-annually with a 20 year amortization requires montly payents. How much will the amortization period be shortened if a prepayment of $13 000 is made at the end of the fourth year?

User Account

All Pages