Why ebit considered to be independent of financial leverage
Why EBIT is generally considered to be independent of financial leverage? Why might EBIT actually be influenced by financial leverage at high debt levels?
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Why do you think it is easier for firms with weak credit positions to obtain lease financing than bank loan financing?
Why do U.S. corporations build manufacturing plants abroad when they can build them at home?
A company makes power tools. The Motor Division makes a motor that Small Tools Division needs for a new product. The Motor division's variable cost of manufacturing the component is $6 per unit.
Identify each of the following responsibility centers as a cost center, a revenue center, a profit center, or an investment center:
When the budget was almost complete, Dunn asked the financial assistant to increase amounts budgeted for labor and supplies 15%.
Why is it sometimes misleading to compare a company's financial ratios with other firms that operate in the same industry?
No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year.
Prepare separate properly labeled schedules detailing the individual costs that should be capitalized in the land account and in the buildingaccount on the Companys balance sheet as of December 31, 2018 prior to recording any depreciation.
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