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Alenkinab [10]
3 years ago
15

A firm has EBIT of $375,000, interest expense of $75,000, preferred dividends of $6,000 and a tax rate of 40 percent. The firm's

degree of financial leverage at a base EBIT level of $375,000 is
Business
1 answer:
Andru [333]3 years ago
4 0

Answer: 1.29

Explanation:

The following can be deduced from the question:

EBIT = $375000

Interest expense = $75000

EBT = EBIT - Interest Expense

= $375000 - $75000

= $300000

Before tax preference dividend

= Preferred dividend / (1 - Tax rate)

= 6000 / (1 - 40%)

= 6000 / 60%

= 6000 / 0.6

= $10000

The firm's degree of financial leverage will then be:

= EBIT / (EBIT - Interest expense - Before tax preference dividend)

= 375000 / (375000 - 75000 - 10000)

= 375000 / 290000

= 1.29

Therefore, the firm's degree of financial leverage is 1.29.

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Which of the following is considered the output in the systems thinking example of a decision support system?
12345 [234]

Answer:

6) Forecasts:

Explanation:

Considering the available options the output in the systems thinking example of a decision support system is FORECASTS

Given that the Direct Support System's output is any form of representation that is a proud t of DSS input. It is usually in form of graphical objects, forms, or tables. This output shows the information that is derived from input analysis. It is used to support the decision-making process.

Hence, in this case, the correct answer is "Forecasts"

5 0
3 years ago
Which of the following statements is not true concerning Peter Jackson's use of computer-generated imagery in The Lord of the Ri
Sonbull [250]

Answer:

c

Explanation:

I believe its C due to the fact. stunt doubles are actual individuals. or they would just have the actor be edited instead of placing a digital stunt double.

6 0
3 years ago
The production department is proposing the purchase of an automatic insertion machine. It has identified 3 machines and has aske
cricket20 [7]

Answer: the correct answer is a. Machine B

Explanation:

Machine A average rate return

40000 out of 300000. It means that 300000 is 100% and $ 40000 is X. We apply a simple three rule:

40000       X                     X= 4000000/300000

300000     100%               X= 13.33%

Machine B average rate return

50000 out of 250000. It means that 250000 is 100% and $ 50000 is X. We apply a simple three rule:

50000       X                     X= 5000000/250000

250000     100%               X= 20%

Machine C average rate return

$75,000 out of $500,000. It means that $500,000 is 1005 and $75,000 is X. We apply a simple three rule

$75,000     X                       X=7500000/500000

$500,000  100%                 X= 15%

The highest average is the one onf Machine B

4 0
4 years ago
The following section is taken from Blossom's balance sheet at December 31, 2021. Current liabilities Interest payable $ 40,500
aev [14]

Answer:

(a) Journalize the payment of the bond interest on January 1, 2022.

Dr Interest payable - bonds payable 40,400

    Cr Cash 40,400

The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.

(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.

Dr Bonds payable 100,000

Dr Call premium 3,000

    Cr Cash 103,000

(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.

interest expense = $405,000 x 8% = $32,400

Dr Interest expense - bonds payable 32,400

    Cr Interest payable - bonds payable 32,400

3 0
4 years ago
Which 3 data points can be imported into the app transactions tab in quickbooks online?.
Dmitry [639]

Answer: Description, Date, and Amount. 

5 0
2 years ago
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