Conduct a sensitivity analysis financial leverage by varying the debt-to-equity ratio and analyzing the impact on the
Fantastic news! We've Found the answer you've been seeking!
Question:
Conduct a sensitivity analysis financial leverage by varying the debt-to-equity ratio and analyzing the impact on the company's financial performance and stock price. if the debt/ equity ratio is -38.06. show the sensitivity in stepwise for excel calculation
| Qantas Airways Limited | |||
| Income Statement (in AUD) | June '22 | June '21 | June '20 |
| Operating Revenue | 8,700,000,000.00 | 5,722,000,000.00 | 14,054,000,000.00 |
| Other Revenue | 408,000,000.00 | 212,000,000.00 | 203,000,000.00 |
| Total Revenue Excluding Interest | 9,108,000,000.00 | 5,934,000,000.00 | 14,257,000,000.00 |
| Operating Expenses | (8,136,000,000.00) | (5,169,000,000.00) | (11,986,000,000.00) |
| EBITDA | 972,000,000.00 | 765,000,000.00 | 2,271,000,000.00 |
| Depreciation | (1,681,000,000.00) | (1,729,000,000.00) | (1,848,000,000.00) |
| Amortisation | (120,000,000.00) | (200,000,000.00) | (197,000,000.00) |
| Depreciation and Amortisation | (1,801,000,000.00) | (1,929,000,000.00) | (2,045,000,000.00) |
| EBIT | (829,000,000.00) | (1,164,000,000.00) | 226,000,000.00 |
| Net Interest Expense | (301,000,000.00) | (301,000,000.00) | (271,000,000.00) |
| Profit Before Tax | (1,130,000,000.00) | (1,465,000,000.00) | (45,000,000.00) |
| Tax Expense | (331,000,000.00) | (623,000,000.00) | 744,000,000.00 |
| Net Profit | (799,000,000.00) | (842,000,000.00) | 699,000,000.00 |
Expert Answer:
SOLUTION To perform a sensitivity analysis we need to vary one or more input variables and assess the resulting impact on the output variables In this case well vary the debttoequity ratio and analyze ... View the full answer
Related Book For 
Posted Date:
