Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

CFA Events Calendar

View full calendar

Recommended Discussions

See how our partners can help you ace your CFA exams.

Question of the Week - Corporate Finance

exam_whizexam_whiz IllinoisPosts: 68 Sr Associate
edited May 2014 in Level 1 Questions
Meta Corp. sells 15,000 units of its product at a price of $10 per unit. The company’s fixed costs are $12,000 and interest expense is $3,000. The variable cost per unit is $7, and the company’s EBIT is $15,000.

Meta Corp’s degrees of operating leverage and financial leverage are:
www.exam-whiz.com   Use coupon code 300Hours for a 15% discount!

Question of the Week - Corporate Finance 32 votes

Degree of operating leverage = 1.25, Degree of financial leverage = 1.36
28%
Zeemokamotoanmurlationtoonervathendry7abrahmb2alex_fioritoitsalwayslupussramans 9 votes
Degree of operating leverage = 1.36, Degree of financial leverage = 1.25
71%
mbnmichael17GeorgeKopNaidenBRoyDProsper0HmelendezshazTeemosimply_complex2shannondailyThomasWrachelmroverfanclubarhelpaTheClawosaloisrogersp188PrashantadobeferociousBeregond 23 votes
Degree of operating leverage = 1.42, Degree of financial leverage = 1.19
0%

Comments

Sign In or Register to comment.