Company produces barometers. Company has 3 million assets which are covered by long-term debt of 700.000 by account payable of 300.000 and by common equity also. Interest rate of long-term liabilities is 8%, tax rate is 20%. Common shareholders approved a dividend of 60% of the profit, which corresponded to their perceptions of their profitability in relation to the risk- in total, they were paid 300.000 of dividends. The assets turnover is 1.
a) What is the WACC?
b) How effective is the effect of financial leverage?
c) What is EVA?
d) Are shareholders satisfied with profitability?
e) What is the degree of operational leverage?