Last year, Dolphin Inc. had sales of $5,000,000, total variable costs of $2,000,000, and total fixed costs of $1,000,000. In addition, they paid $300,000 in interest to bondholders. Dolphin has a 30% marginal tax rate. If Dolphin's sales increase 10%, what should be the increase in earnings per share?
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- Last year, Cayman Corporation had sales of $6,834,793, total variable costs of $2,832,135, and total fixed costs of $1,547,197. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 7%, what should be the increase in earnings per share?Last year, Cayman Corporation had sales of $6 million, total variable costs of $2 million, and total fixed costs of $1 million. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 6%, what should be the increase in operating income?Last year, Cayman Corporation had sales of $6,608,800, total variable costs of $2,695,237, and total fixed costs of $1,517,037. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 10%, what should be the increase in earnings per share? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46.
- Last year, Cayman Corporation had sales of $6,766,704, total variable costs of $2,557,445, and total fixed costs of $1,589,315. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 5%, what should be the increase in earnings per share? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46. 2. Kiwi Airlines has fixed operating costs of $3 million, and its variable costs amount to 22 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent . Revenues for the firm are $10 million and the firm is in the 21 percent corporate income tax bracket . What is the firm's degree of operating leverage ? SET YOUR CALCULATOR TO 4 DECIMAL PLACES . ROUND TO 2 DECIMAL PLACES AT THE END. FOR EXAMPLE , IF YOUR ANSWER IS 9.4567 ENTER IT AS 9.46 . Please help me with them before…Pfizer currently has a Net Profit Margin of 5%, its corporate tax rate is 21% and its annual interest payments are $20 million. How much do Pfizer’s sales need to be to produce a times interest earned (TIE) of 8.0?Grommit Engineering expects to have net income next year of $24.36 million and free cash flow of $22.17 million. Grommit's marginal corporate tax rate is 35%. a. If Grommit increases leverage so that its interest expense rises by $6.7 million, how will net income change? b. For the same increase in interest expense, how will free cash flow change? a. If Grommit increases leverage so that its interest expense rises by $6.7 million, how will net income change? Net income will fall to $ 4.36 million. (Round to two decimal places.) b. For the same increase in interest expense, how will free cash flow change? (Select the best choice below.) A. Free cash flow increases by the amount of the interest expense. B. Free cash flow decreases by the amount of the interest expense. C. Free cash flow is not affected by interest expense. D. None of the above.
- Last year the Rondoelea Products Company had $142 million in annual sales and a net profit margin of 10.4 percent. In addition, Rondoelea's average tax rate was 30 percent. If Rondoelea had $37 million of debt outstanding with an average interest rate of 9.3 percent, what is the firm's times interest earned ratio?What are its after tax earnings? AccountingA firm has a profit margin of 15% on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500.00, and a after-tax interest cost on total debt of 5%, what is the firm's ROA?
- Last year, Cayman Corporation had sales of $7 million, total variable costs of $2 million, and total fixed costs of $1 million. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 6%, what should be the increase in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46. 420,000Marine Outlets, Inc. had $ 14 million in sales last year, COGS of $ 8 million, depreciation expense of $ 2 million, $ 1 million in interest payments on long-term debt. If the firm's “tax rate” is 35%, how much is the Firm's Net Income?What is the profit margin if the tax rate is 35 percent ?