Assume the following information pertains to Zigler Corporation:Sales$1,000,000Total Variable Costs (40% of sales)400,000Fixed CostsEBITInterest ExpenseEBTTaxes (21%)EAT#shares outstandingEPS300,000300,000100,000200,00042,000158,000100,000$1.58Determine EPS if sales increase to $1,200,000. Then determine the DOL, the DFL, and the DCL.

FormulasEPS = EAT/ Shares OutstandingDOL= Contribution Margin/ EBITDFL-= EBIT/EATDCL=Contribution…

Answered: Fixed Costs EBIT Interest Expense EBT…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

For Rebound Tourism Inc. Per share Price=$40Investment cost for 100 shares=$40×100=$4,000 Please explain answer.
Stock Expected Dividend Expected Capital Gain A $0 $10 B $5 $5 C $10 $0 A.) If each stock is priced at $175, what are the expected net precentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (iii) an individual with an effective tax rate of 10% on dividends and 5% on capital gains? B.) Suppose that investors pay 40% tax on dividends and 10% tax on capital gains. If stocks are priced to yield an after-tax return of 10%, what would A,B, and C each sell for? Assume the expected dividend is a level perpetuity.
D3) Finance Stock A price increases from $10 to $11 and pays a dividend of $1 => return of $2 on $10 Stock B price increases from $10 to $10.25 and pays a dividend of $0.25 => return of $0.50 on $10 Interest rate on short proceeds and margin account: 0.5%/month Borrowing fee: 1% annually; Holding period=1 month What is the return of the long/short fund?
Please use excel formulas Current dividend Years until dividend ceases Required return (Use cells A6 to B8 from the given information to complete this question.) Output area: Share price $9.45 13 10.70% ?
rofit margin = 9.2 % Capital intensity ratio = .53 Debt-equity ratio = .68 Net income = $ 103,000 Dividends = $ 52,000 Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Pls use formula to calculate r = (FV/PV)(1/t) - 1 (b)Shares in Plc currently sell for Rs 4200 and will be worth Rs 4,975 in 7.5 years. Calculate the rate of return
Assume the company earns $1.62 per share. What was the sale volume? 52 Weeks Stock (Sym) Jaymen Co. Volume (100's) 51,615 Net Change - 0.50 HI LO DIV YLD % PE Close 49.94 40.25 0.58 46.90 Sale volume
Consider the following table of Earnings Components: Firm A Firm B Firm C Reported EPS $12 $15 $18 Analyst’s EPS composition: Permanent component (βP = 5) 80% 60% 75% Transitory component (βT = 1) 10% 35% 25% Value-irrelevant component (β0 = 0) 10% 5% 0% The implied total earnings multiple of Firm B is: Multiple Choice 1.00. 3.00. 3.35. 12.00
What is the rate return when 30 shares of atock a purchase for $15/share, are sold for 480? The commission on the sale is $6
The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is the return on total assets (ROA)? a. 8.0% b. 10.0% с 12.0% 16°10 do
Manning Inc. stock is selling for $40 per share based on a 8% rate of retum Which of the following formulas is correct for F4 to calculate the next annual dividend payment with a 6% dividend growth rate? 5 Ⓒ-F1*(F2-F3) Ⓒ-F3 (F2-F1) O-F1 (F2-F3) Ⓒ-F1AF2-F3) Intrinsic Value Required Return Growth Rate Next Dividend F 40.00 SK 7
Consider the financial statements for the REIT given below. Assume that the net revenue includes a loss of $4,000,000 on an asset sale. This REIT has issued 1,000,000 shares. Similar REITs are trading at FFO multiples of 10x. What valuation (share price) does this information imply for the REIT? Net Revenue Less: Less: Interest expense Net income O 49.2 O 129.2 O 95.2 89.2 Operating expenses Depreciation and amortization Income from operations $20,000,000 9,800,000 4,400,000 5,800,000 $ 1,280,000 $ 4,520,000

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Fixed Costs EBIT Interest Expense EBT Taxes (21%) EAT #shares outstanding EPS 300,00 300,000 100,000 200,000 42,000 158,000 100,000 $1.58 Determine EPS if sales increase to $1,200,000. Then determine