What percentage will opereting cash flow change? Accounting The operating leverage of Phoenix Innovations Inc. is 1.25. If sales increase by 7.2%,by what percentage will operating cash flows change?A) 8.10% increaseB) 9.00% increaseC) 7.50% increase

Step 1: Definition of Operating LeverageOperating leverage measures the sensitivity of a company's…

Answered: The operating leverage of Phoenix…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

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You are given the following information for a firm: EBIT this period = $18.7 million Depreciation = $2.5 million Net Working Capital Increase = $0 Asset Beta = 1.4 Capital Expenditures = $3.2 million Growth Rate of FCF = 3% Risk Free Rate = 3% Market Risk Premium = 6.3% Using the above data, what is the present value of all FCF?
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Consider the following data (be careful there might be some "unnecessary" information). EBIT = 176 Interest expense = 10 Tax rate = 30% Depreciation = 38 Net working capital = 30 Increase in net working capital = 10 Beginning of period Net PP&E = 50 Capex = 16 What is the free cash flow of the firm that year?
Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constant rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the firm's total corporate value? a. $3,150,000 b. $2,850,000 c. $2,707,500 d. $2,572,125 e. $3,000,000
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Use the below information to value the debt in a levered company with annual perpetual cash flows from assets that grow. The next cash flow will be generated in one year from now. Data on a Levered Firm with Perpetual Cash Flows Item abbreviation Value Item full name FFCF (millions) $30.5 Firm free cash flow (or Cash Flow from Assets) g 2% pa Growth rate of OFCF rD 3% pa Cost of debt rEL 6% pa Cost of levered equity D/VL 35% pa Debt to assets ratio, where the asset value includes tax shields tc 30% Corporate tax rate The current value of debt is a. 1157.5 b. 361.86 c. 405.12 d. 446.63 e. 672.03
What is the firm's total corporate value? General accounting question
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The operating leverage of Phoenix Innovations Inc. is 1.25. If sales increase by 7.2%, by what percentage will operating cash flows change? A) 8.10% increase B) 9.00% increase C) 7.50% increase