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NEW QUESTION: 1
Ace Consulting, a corporate finance consulting firm, is examining the operating performance and asset structure of Clay Industries. In their analysis, Ace has identified the following information for the most recent reporting period:
EBIT $500,590
Sales $988,000
Interest paid $40,800
Given this information, what is the Degree of Financial Leverage for Clay Industries?
A. None of these answers is correct.
B. The Degree of Financial Leverage cannot be calculated from the information provided.
C. 2.149
D. 0.465
E. 0.567
F. 1.974
Answer: A
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:
{$500,590/[$500,590 - $40,800]}= 1.089. The annual sales figure is not necessary in the calculation of DFL. Additionally, remember that the DFL figure is always greater than one, therefore the first and fourth answers can be eliminated as possibilities by observation alone.
NEW QUESTION: 2
When manually configuring the SGA, which of the following parameter changes requires an instance restart to take effect?
A. LARGE_POOL_SIZE
B. SHARED_POOL_SIZE
C. SORT_AREA_SIZE
D. DB_CACHE_SIZE
E. SGA_MAX_SIZE
F. JAVA_POOL_SIZE
Answer: E
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
SEC2.0 is used for burst packet loss. ()
A. FALSE
B. TRUE
Answer: A