Compute the degree of financial leverage for a firm with EBIT of P6,000,000, fixed costs of P3,000,000, interest expense of P1,000,000, preferred stock dividends of P800,000 and a 40% tax rate. a. 1.2 b. 1.11 c. 1.43 d. 1.64
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Compute the degree of financial leverage for a firm with EBIT of P6,000,000, fixed costs of P3,000,000, interest expense of P1,000,000,
a. 1.2
b. 1.11
c. 1.43
d. 1.64
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- if A firm's current balance sheet is as follows: Assets $100 Debt $10 Equity $90 a. what is the firm's weighted-average cost of capital at various combinations of debt and equity, given the following information? Debt/assets after-tax cost of Debt cost of equity cost of capital 0% 8% 12% ? 10 8 12 ? 20 8 12 ? 30 8 13 ? 40 9 14 ? 50 10…Compute the degree of financial leverage for a firm with EBIT of P6,000,000, fixed costs of P3,000,000, interest expense of P1,000,000, preferred stock dividends of P800,000 and a 40% tax rate. A. 1.2 B. 1.11 C. 1.43 D. 1.64 E. Answer not givenSuppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the firm's payout ratio be? Multiple Choice .42 .114 1.14 8.810
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