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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. 1.940
C. 1.138
D. 1.197
E. 1.063
F. The Degree of Financial Leverage cannot be calculated from the information provided.
Answer: C
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
You are using intercompany planning in Microsoft Dynamics AX 2012. You create a purchase order in company A, with company B as the vendor. What does Microsoft Dynamics AX 2012 create in company B?
A. an intercompany sales order
B. an intercompany inventory transfer
C. an intercompany purchase order
D. an intercompany general ledger posting
Answer: A
NEW QUESTION: 3
A user states every time Windows boots up it runs very slow for the first few minutes. The user asks if a technician can shorten the boot time. Which of the following tools would be used to address the issue?
A. FIXMBR
B. FIXBOOT
C. SFC
D. MSCONFIG
Answer: D
NEW QUESTION: 4
Attackers can manipulate variables that reference files with "dot-dot-slash (./)" sequences and their variations such as http://www.juggyDoy.corn/GET/process.php./././././././././etc/passwd.
Identify the attack referred.
A. SQL Injection
B. XSS attack
C. Directory traversal
D. File injection
Answer: C
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