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vovangra [49]
3 years ago
12

A​ 20% increase in sales causes EPS to rise from​ $4.00 to​$6.50. Assuming the firm has no​ debt, what is its degree of operatin

g leverage​ (DOL)?
A. 3.13 B. 2.25 C. 1.50 D. 1.57 E. 1.00
Business
1 answer:
Anna [14]3 years ago
5 0

Answer:

A

Explanation:

DOL =  Percentage change in EBIT / percentage change in sales

EPS = {(EBIT - Interest) × (1 - T) } / Shares

The firm has no debt, so interest would be zero

EPS = EBIT × (1 - T) / Shares.

Tax rate and number of outstanding shares remain unchanged.

Percentage Change in EPS = EBIT.

Percentage Change in EPS = (6.5 / 4) - 1 = 0.625 = 62.5%

EBIT = 62.5%

Percentage change in sales= 20%

DOL =  62.5% / 20% =  3.13

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olya-2409 [2.1K]

Answer:

the correct answer is "Mobile Banking".

Explanation:

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Mobile banking is more popularized through the launch of new applications in the iOS and Android platforms.

Mobile banking has made it easier for the customers to do banking related activities and it has made it easier for the banks to process more transactions without increasing their number of employees.

7 0
3 years ago
A company is preparing financial statements using IFRS for the first time for the year ended December 31, 2018. The "transition
8_murik_8 [283]

Answer:

E. January 1, 2017

Explanation:

Financial statements are prepared showing at least two years for the sake of comparability.

It will be important for the company in presenting its financial statement using the IFRS for the year ended December 31st 2018 to show the financial statements for the year ended 31st December 2017 as if it had always applied the IFRS.

The basic idea is to show in the financial statements the effects of adopting the IFRS from a preceding period in order for the entity to show the financial statement for 2017 and 2018 and be able to compare them having been prepared on the same basis.

Thus, the transition date will be the beginning of the preceding period when the IFRS was applied (1st Jan. 2017 oe 31st Dec. 2016).

I hope this explanation makes the concept easy to grasp.

Thank you.

7 0
3 years ago
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, a
Mama L [17]

Answer: $120,000

Explanation:

Purchase Price for 80%) $1,600,000 - (FV $1,850,000 × .80 = $1,480,000) = $120,000

4 0
3 years ago
Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of
Ksju [112]

Answer:

The equivalent units of production for conversion cost would be $11,680 units

Explanation:

The computation of the equivalent unit of conversion is shown below:

= (Beginning inventory units × remaining percentage)  + (units started and  completed units × completed percentage) + (ending inventory units × completed percentage)

= (6,800 units × 25%) + (6,500 units × 100%)  + (5,800 units × 60%)

= 1,700 units + 6,500 units + $3,480 units

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6 0
2 years ago
Compare your results to the industry ratios and describe what NMC should do to improve its position in the market.
docker41 [41]

Answer:

sorry need points ok.

Explanation:

sorry talaga ha

pero wag kayong magalit

  1. ayaw kasuko
  2. wag kang magalit
  3. never angry

7 0
2 years ago
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