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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 C
B. Firm B
C. Firm A
D. Firm D
E. Firm E
Answer: B
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 root account owner is trying to setup an additional level of security for all his IAM users. Which of the
below mentioned options is a recommended solution for the account owner?
A. Enable access key and secret access key for all the IAM users
B. Enable MFA for the root account
C. Enable MFA for all IAM users
D. Enable the password for all the IAM users
Answer: C
Explanation:
Multi-Factor Authentication adds an extra level of security for all the users. The user can enable MFA for
all IAM users which ensures that each user has to provide an extra six digit code for authentication.
Reference: http://docs.aws.amazon.com/IAM/latest/UserGuide/Using_ManagingMFA.html

NEW QUESTION: 3
You have an Azure Active Directory (Azure AD) tenant that contains a user named User1 and the groups shown in the following table.

In the tenant you create the groups shown in the following table.

Which members can you add to GroupA and GroupB? To answer, select the appropriate options in the answer are a. NOTE; Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 4
You want to consolidate backup information and centrally manage backup and recovery scripts for multiple databases running in your organization.
Which two backup solutions can be used? (Choose two.)
A. Oracle Secure Backup
B. RMAN recovery catalog
C. RMAN Media Management Library
D. Enterprise Manager Cloud Control
E. Enterprise Manager Database Express
Answer: B,D