Kermit's Hardware's (KH) Fixed Operating Costs Are $20

question 67

Multiple Choice

Kermit's Hardware's (KH) fixed operating costs are $20.8 million, and its variable cost ratio is 0.30. The firm has $10 million in bonds outstanding with a coupon interest rate of 9%. KH has 200,000 shares of common stock outstanding. The firm has revenues of $32.2 million, and its marginal tax rate is 40%. Compute KH's degree of operating leverage.

• A) 14.81
• B) 5.19
• C) 12.95
• D) 4.54

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Definitions:

Consensual Criteria

The agreement among researchers or judges on the standards used to evaluate or judge something, ensuring consistent and objective assessment.

Accuracy Of Personality Judgments

Refers to how precisely people can assess others' personalities, often influenced by their observations, the contexts, and their biases.

Shy

Feeling nervous or timid in the presence of others, often leading to withdrawal from social interactions.

Cold And Aloof

Describing someone who is emotionally distant, unapproachable, and shows little to no warmth or openness in social interactions.