Answer: 26.15
Explanation: The degree of operating leverage is calculated as the percentage change in operating income in relation to a percentage change in sales.
Thus the degree of operating leverage of Gateway inn is calculated thus:
DOL = Cont Margin/Operating income
DOL = 47/(4.6-3.3)
DOL = 47/1.3
DOL= 26.15
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: $150,000
Explanation:
The Dividend Received Deduction is a Federal tax deduction that applies when a related company pays dividends to another company that owns part of it.
The relevant provision is that when a company owns more than 80% of the company receiving the Dividend, the Dividend Received Deduction amounts to 100% of dividends received.
Cooper Corporation may therefore claim a deduction of $150,000 being the total amount as they own 85% of Broze Corporation Stock.
Answer:
d.) I and II
Explanation:
The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.
