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NEW QUESTION: 1
A company currently sells 75,000 units annually. At this sales level, its EBIT is $4 million, and its degree of total leverage is 2.0. The firm's debt consists of $15 million in bonds with a 9.5 percent coupon. The company is considering a new production method which will entail an increase in fixed costs but adecrease in variable costs, and will result in a degree of operating leverage of 1.6. The president, who is concerned about the stand-alone risk of the firm, wants to keep the degree of total leverage at 2.0. If EBIT remains at
$4 million, what amount of bonds must be retired to accomplish this?
A. $4.44 million
B. $6.58 million
C. $8.42 million
D. $9.19 million
E. $7.63 million
Answer: B
Explanation:
Explanation/Reference:
Explanation:
DTL = (DOL)(DFL)
2.0 = 1.6(DFL)
1.25 = DFL.
1.25 = $4,000,000/($4,000,000-I)
$5,000,000 - 1.25(I) = $4,000,000
I = $800,000.
Debt = $800,000/.095 = $8,421,053.
Must retire = $15,000,000 - $8,421,053 = $6.58 million of debt.
NEW QUESTION: 2
次の各ステートメントについて、ステートメントがtrueの場合は[はい]を選択します。それ以外の場合は、[いいえ]を選択します。注：正しい選択はそれぞれ1ポイントの価値があります。
Answer:
Explanation:
NEW QUESTION: 3
At a minimum, which HP 3PAR StoreServ software should be included in a design to seamlessly adjust the RAID level?
A. HP 3PAR Data Optimization Suite
B. HP 3PAR Dynamic Optimization
C. HP 3PAR Data Optimization suite v2
D. HP 3PAR Adaptive Optimization
Answer: B
NEW QUESTION: 4
What happens when a user is already logged in when restricted hours start?
Answer:
Explanation:
The system
immediately ends the
user's session.
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