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NEW QUESTION: 1
Which of the following Companies has the highest degree of financial leverage?
Firm A
EBIT: $1,500,000
Interest Paid: $130,000
Total Operating Expenses: $600,000
Fixed Operating Expenses: $350,000
Firm B
EBIT: $400,000
Interest Paid: $55,000
Total Operating Expenses: $1,300,000
Fixed Operating Expenses: $1,000,000
Firm C
EBIT: $500,000
Interest Paid: $45,000
Total Operating Expenses: $6,000,000
Fixed Operating Expenses: $4,750,000
Firm D
EBIT: $995,000
Interest Paid: $105,000
Total Operating Expenses: $5,000,000
Fixed Operating Expenses: $3,000,000
Firm E
EBIT: $995,000
Interest Paid: $120,000
Total Operating Expenses: $5,900,000
Fixed Operating Expenses: $2,000,000
A. Firm A
B. Firm E
C. Firm B
D. Firm D
E. Firm C
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The Degree of Financial Leverage (DFL) measures the percentage change in EPS that results from a given percentage change in EBIT. Financial Leverage is the second component of total leverage, along with Operating Leverage. The equation used to calculate the Degree of Financial Leverage is as follows:
{DFL = [EBIT/(EBIT - Interest Paid)]}.
In this example, Firm B has the highest DFL, with a figure of 1.15942. Remember that the Degree of Financial Leverage can never be less than one, and can never be negative In a situation where thecompany under examination has zero interest expense, the DFL would be equal to one, i.e. the EBIT is equal to the EBIT minus the interest expense. Another important note to remember is that in calculating the Degree of Financial Leverage, dividend payments to preferred stockholders should be included in the interest expense figure. Operating expenses are not factored into the DFL calculation, rather are used in the determination of Operating Leverage.

NEW QUESTION: 2
A web-based application is responding very slowly. The network administrator is looking at the following information from the transparent web proxy, which is configured in virtual-wire mode and is in the between the company's network and the Internet.

Given the above information, which of the following is the layer of the OSI model at which the issue is occurring and the MOST likely reason it is occurring? (Select two.)
A. Layer 1
B. Layer 3
C. Bad cable
D. The application crashed
E. NO IP addresses on interfaces
F. Layer 7
G. Excessive TCP resets
H. Layer 4
Answer: B,C
Explanation:
Explanation
http://www.cisco.com/en/US/docs/internetworking/troubleshooting/guide/tr1907.html
https://blog.ruxit.com/detecting-network-errors-impact-on-services/

NEW QUESTION: 3
Three organizations are collaborating on a project, using a distributed information architecture. Each organization has its own procedure for giving privileges to information, resulting in inconsistent access to information. The project manager asks the information manager to recommend a solution that gives team members consistent access to information. The information manager's recommendation is to
A. Control user privileges based on the user's organization,
B. Control user privileges based on the user's role.
C. Develop a standard checklist for all administrators to use.
D. Route all access requests to one administrator.
Answer: B