Question: For GG Co calculate the degree of total leverage DTL
For GG. Co., calculate the degree of total leverage (DTL) and break-even point of sales at which the firm covers all its operating and fixed costs, given the following information: sales are $5,050,000; variable cost is $1,850,000; net income is $685,750; tax rate (T) is 35 percent; and fixed cost is $2,100,000.
Answer to relevant QuestionsGG Co. shows the following information on its financial statements: interest-bearing debt is $900,000; shareholders’ equity (SE) is $2,500,000; sales are $5,050,000; net income is $685,750; dividends are $200,000; and ...Determine leverage ratios, including debt ratio and debt-equity ratio, in both years. Has Excelsior Inc. improved on its leverage ratios in year2?One key part of ROE in the DuPont system is the return on assets (ROA). Find the ROA for Finns’ Fridges for both years and determine if it is increasing or decreasing.Finns’ Fridges is a company created by twin brothers ...If Excelsior Inc.’s expected sales growth rate is 5 percent, determine the external financing required. Will the corporation have a cash surplus ordeficit?After living in a university residence for one year, Mary-Beth decides to rent an apartment for the remaining three years of her degree. She has found a nice location that will cost $450 per month. Rent for the first and ...
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