The following information relates to BRF Corporation: Sales Revenue $500 000 (10 000 units @ $50/unit) Variable costs of Operations $200 000 (10 000 @ $20/unit) Contribution Margin $300 000 Fixed Cost of Operation $200 000 Operation Income (EBIT) $100 000 Interest Expense $50 000 Earnings before Taxes (EBT) $50 000 What is BRF Corporation's degree of operating leverage (DOL)? You just purchase a share of Apple for $150. You expect to receive a dividend of $12 in one year. If you expect the price after the dividend is paid to be $185, what total return will you have earned over the year? What was your dividend yield? What is your capital gain rate?
The following information relates to BRF Corporation: Sales Revenue $500 000 (10 000 units @ $50/unit) Variable costs of Operations $200 000 (10 000 @ $20/unit) Contribution Margin $300 000 Fixed Cost of Operation $200 000 Operation Income (EBIT) $100 000 Interest Expense $50 000 Earnings before Taxes (EBT) $50 000 What is BRF Corporation's degree of operating leverage (DOL)? You just purchase a share of Apple for $150. You expect to receive a dividend of $12 in one year. If you expect the price after the dividend is paid to be $185, what total return will you have earned over the year? What was your dividend yield? What is your capital gain rate?
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 6P
Related questions
Question
Calculate dol?

Transcribed Image Text:The following information relates to BRF Corporation:
Sales Revenue
$500 000 (10 000 units @ $50/unit)
Variable costs of Operations $200 000 (10 000 @ $20/unit)
Contribution Margin
$300 000
Fixed Cost of Operation
$200 000
Operation Income (EBIT)
$100 000
Interest Expense
$50 000
Earnings before Taxes (EBT) $50 000
What is BRF Corporation's degree of operating leverage (DOL)?

Transcribed Image Text:You just purchase a share of Apple for $150.
You expect to receive a dividend of $12 in one
year. If you expect the price after the
dividend is paid to be $185, what total return
will you have earned over the year? What
was your dividend yield? What is your capital
gain rate?
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