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NEW QUESTION: 1
Clay Industries, a large industrial firm, is examining the capital structure of one of its Lebanese subsidiaries. The management of Clay Industries has identified the following information:
EBIT $1,000,000
EPS $1.88
Interest paid $121,590
Sales $1,940,000
Cost of debt 6.60%
Given this information, what is the Degree of Financial Leverage for this operating division?
A. 1.551
B. 1.138
C. 1.197
D. 1.940
E. The Degree of Financial Leverage cannot be calculated from the information provided.
F. 1.063
Answer: B
Explanation:
Explanation/Reference:
Explanation:
To calculate the DFL, the financial analyst needs to determine the EBIT and interest paid for a predetermined time period. To calculate the Degree of Financial Leverage, the following equation is used:
{EBIT/[EBIT - interest paid]}. Incorporating the given information into this equation yields the following:
{EBIT $1,000,000 / [EBIT $1,000,000 - interest paid $121,590]}= 1.138.
The Degree of Financial Leverage measures the percentage change in EPS which results from a given percentage change in EBIT. Remember that any preferred stock dividends must be incorporated into the DFL calculation, and that the DFL can never be less than one.
NEW QUESTION: 2
Why would an administrator want to copy a user profile?
A. The user has changed names and the administrator is setting up an account in the new name.
B. The user was deleted using a third-party authentication provider.
C. The user requires enhanced security permissions before logging on to IBM Cognos BI for the first time.
D. The administrator wants to copy trusted credentials for multiple users.
Answer: A
NEW QUESTION: 3
Which is a capability of a campaign? Choose 2 answers MMM
A. Add campaign members to other related campaigns using an Apex trigger
B. Update the campaign member status of a lead using the manage campaign members feature
C. Track the number of business accounts related to a campaign
D. Convert leads to contacts from the campaign record
Answer: A,B
NEW QUESTION: 4
A. FileNet Content Manager
B. Lotus Domino
C. PureData for Operational Analytics
D. InfoSphere Biginsights
Answer: D