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Parts of financial records for Company XYZ are:
Anticipated sales = $400,000
Degree of financial leverage = 4/3
Variable cost = $200,000
Combined leverage effect = 2
Quantity sold = $100,000 units
Profit margin = 5%
Total debt = $200,000
Leverage ratio = 1/2
Common stock outstanding = 10,000 shares
Current price per share = $40
Retention rate = 1/2
IRR = 8%
Calculate the following:
a) The total interest expense.
b) The total fixed cost.
c) The degree of operating leverage.
d) The break-even quantity.
e) The EAIT.
f) Total corporation income tax expense.
g) The return on net worth.
h) The return on total asset.
i) The EPS.
j) The P/E ratio for common stock.
k) The pay-out ratio for dividend.
l) The growth rate for the common stock.
m) The required rate of return.
n) Total asset turnover.
o) Analyze the financial situation of Company XYZ.
p) If the probablistic concepts are applied to break-evenanalysis, how should the analyses in (o) be revised?
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