Ünite Sınavı Soruları

Goldstar Inc. and Blackline Corp. are two competitors producing DVD players. Both firms record the same EBIT amount of $4,000,000. Goldstar Inc.’s management is conservative and relies more on equity financing whereas Blackline Inc. is a younger company utilizing more debt financing in its capital structure. Goldstar has a debt ratio of 20% and Blackline reports a debt ratio of 50%. Thus, Goldstar incurs $500,000 of interest expense while Blackline pays $1,750,000 of interest. The tax rate is 35% for both companies.

What is the DFL of these companies?

A corp. has a fixed costs of $500,000. And it sales only one product at $40 sale price with $15 variable costs. In case this corp. announces a $75,000 depreciation expense on its physical assets, find the cash break-even point in units.

A pen producer corporation sales its products $2/unit. It has variable costs of $1.2 per unit and total fixed cost of $50,000. What is the break-even sales in dollars?

Which one of the equation gives us the Unit Contribution Margin

A cable corp. is producing fiber obtic cables. The firm records $2,500,000 EBIT and incurs $500,000 of interest expense. What is the degree of financial leverage this company?