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Question
Soleon, Inc. had the following financial data for the fiscal year ending September 30, 2014.Sales $1,937,813
Depreciation and amortization $70,657
Fixed costs $132,456
Earnings before interest and taxes $564,441
Calculate the firm's degree of pre-tax cash flow operating leverage during fiscal 2014?
A) 1.21
B) 1.46
C) 1.17
D) 1.85
Answer
This answer is hidden. It contains 10 characters.
Related questions
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Q:
Bifive Homes, Inc., is a developer of planned residential communities. It has entered into an option contract with a land owner outside Austin, Texas. It will pay the land owner $100,000 for the option to buy the land in two years at a price of $20 million. During that time Bifive Homes will evaluate population and real estate trends in Austin. Its plan is to buy the land if real estate prices in Austin increase enough that developing the land would be worth more than the $20 million price. The $20 million purchase price resembles:
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Q:
When the value of the firm is above the face value of the debt:
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C) the stockholders default and the lenders receive the value of the firm.
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Q:
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Which of the following statements is true of a call option?
A) The value of a call option can never be positive.
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A) True
B) False
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If a firm adds financial options to its debt securities, it will increase the interest expense to the firm.
A) True
B) False
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Consider a call option on a stock with a strike price of $60. If the stock price at expiration is $50, the payoff from the call option is $10.
A) True
B) False