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Number of products produced and sold 200,000 units. The selling price of each unit is 17,000 Rials and the variable costs of each unit are 12,000 Rials, the fixed cost is 37.5 million Rials, the interest cost is 200,000,000 Rials, the preferred dividend is 140 million Rials, the number of ordinary shares is 50,000 shares, the tax rate is 40%. It is desirable: A) Profit before interest, and tax Ebit B) Earnings per share Eps C) Qb operational head-to-head point D)QL operational lever E) Financial leverage FL

Number of products produced and sold 200,000 units. The selling price of each unit is 17,000 Rials and the variable costs of each unit are 12,000 Rials, the fixed cost is 37.5 million Rials, the interest cost is 200,000,000 Rials, the preferred dividend is 140 million Rials, the number of ordinary shares is 50,000 shares, the tax rate is 40%. It is desirable: A) Profit before interest, and tax Ebit B) Earnings per share Eps C) Qb operational head-to-head point D)QL operational lever E) Financial leverage FL

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Number of products produced and sold 200,000 units. The selling price of each unit is 17,000 Rials and the variable costs of each unit are 12,000 Rials, the fixed cost is 37.5 million Rials, the interest cost is 200,000,000 Rials, the preferred dividend is 140 million Rials, the number of ordinary shares is 50,000 shares, the tax rate is 40%. It is desirable: A)Profit before interest, and tax Ebit B) Earnings per share Eps C) Qb operational head-to-head point D)QL operational lever E) Financial leverage FL
Transcribed Image Text:Number of products produced and sold 200,000 units. The selling price of each unit is 17,000 Rials and the variable costs of each unit are 12,000 Rials, the fixed cost is 37.5 million Rials, the interest cost is 200,000,000 Rials, the preferred dividend is 140 million Rials, the number of ordinary shares is 50,000 shares, the tax rate is 40%. It is desirable: A)Profit before interest, and tax Ebit B) Earnings per share Eps C) Qb operational head-to-head point D)QL operational lever E) Financial leverage FL
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