Ohio Steel has a degree of operating leverage of 2.9. The company predicted EBIT of $332,000 and EPS of $5.7 for the year. Actual EBIT were $284,000 and EPS were $2.42.   What is the degree of financial leverage? What is the degree of total leverage? What were earnings before taxes (EBIT - Interest)?   What was the company's gross profit (sales - variable costs)?

A firm has a tax burden of 0.7. a leverage ratio of 1.3, an interest burden of .8, and a return-on-sales ratio of 10%. The firm generates $2.78 in sales per dollar of assets. What is the firm's ROE? A. 16.6% B. 12.4% C. 14.5% D. 20.2%

A firm has a tax burden ratio of 0.85, a leverage ratio of 1.5, an interest burden of 0.9, and a return on sales of 12%. The firm generates $2 in sales per dollar of assets. What is the firm's ROE? (Do not round intermediate calculations. Round your answer to 2 decimal place.) ROE %

Consider a company that pays out all its earnings (i.e., the payout ratio = 1 or plowback/retention ratio=0). The required return for the firm is 13%.  Compute the intrinsic P/E if its ROE is 15%.  Compute the intrinsic P/E if its ROE is 20%.  Discuss why your answers to parts (a) and (b) differ or do not differ from one another.  Suppose that the company’s ROE is 13%. Compute its intrinsic P/E value.  Would the answer to part (d) change if the company retained half of its earnings instead of paying all of them out? Discuss why or why not.

Dupont has determined that its degree of operating leverage (DOL) is 3.1 and its degree of financial leverage (DFL) is 1.9. What impact will a 5% decreases in sales have on Dupont's net income?

Choose the correct letter of answer: In the current year, Company A had P15 Million in sales, while total fixed costs were held to P6 Million. The firm's total assets at year-end were P20 Million and the debt/equity ratio was calculated at 0.60. If the firm's EBIT is P3 Million, the interest on all debt is 9%, and the tax rate is 40%, what is the firm's return on equity? a. 11.16%b. 14.4%c. 18.6%d. 24.0%e. 28.5%

The net profit margin tells how much profit a company makes for every dollar it generates in revenue. If N is the net income (the income after taxes have been paid) and R is the total revenue, then the net profit margin M is given by N M(N, R) R = A certain company pays a tax rate of 20% on its income. (a) Use I for the income before taxes, and express the net income N in terms of I. (Be careful: N is the part of I left after taxes-not the part you pay in taxes.) N = (b) Use a formula to express the net profit margin in terms of the variables I and R. M =

Sheffield Corp.'s degree of operating leverage is 1.9. Warren Corporation's degree of operating leverage is 6. Warren's earnings would go up (or down) by as much as Sheffield's with an equal increase (or decrease) in sales. O 4.1 times O 3.2 times O 0.9 O 7.9 times

Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding depreciation) = $5 million;depreciation = $1.4 million; other operating expenses = $2 million;interest expense = $1 million. If the tax rate is 25%, what is NOPAT,the net operating profit after taxes? ($1.2 million)

Which of the following is true of a leverage ratio? It is a measure of the extent to which a company uses debt compared to equity. O It is a measure of whether the company will have sufficient cash to pay its bills over the following year. O It is a comparison of the company's net income to its stockholder's equity. O It is a measure of the company's ability to be profitable over the coming year. O It is a measure of the rate at which the company "turns over" its inventory.