Degree of operating leverage at financial break-even level

Assignment Help Financial Management
Reference no: EM131343539

A project has the following estimated data: price = $100 per unit; variable costs = $51 per unit; fixed costs = $6,200; required return = 8 percent; initial investment = $7,000; life = five years. Ignore the effect of taxes. What is the accounting break-even quantity?What is the cash break-even quantity?What is the financial break-even quantity? What is the degree of operating leverage at the financial break-even level?

Reference no: EM131343539

Questions Cloud

How you could effectively increase the capacity : If your doughnut business is incredibly successful (to the point that you are now selling them frozen, via grocery stores nationwide, so that people can prepare them in their own homes), explain how you could effectively increase the capacity of your..
Earnings per share if the company issues stock dividend : Assume that Plavor Brands, Inc. has 10,000,000 common shares outstanding that have a par value of $2 per share. The stock is currently trading for $30 per share. The firm reported a net profit after-tax of $25,000,000. All else equal, what will happe..
Design an experiment using a staged manipulation : Design an experiment using a staged manipulation to test the hypothesis that when people are in a good mood, they are more likely to contribute to a charitable cause. Include a manipulation check in your design.
Investors expect the market rate of return this year : Investors expect the market rate of return this year to be 12%. A stock with a beta of 1.2 has an expected rate of return of 14%. If the market return this year turns out to be 8%, what is the rate of return on the stock
Degree of operating leverage at financial break-even level : A project has the following estimated data: price = $100 per unit; variable costs = $51 per unit; fixed costs = $6,200; required return = 8 percent; initial investment = $7,000; life = five years. Ignore the effect of taxes. What is the accounting br..
What is the cost of equity and pretax cost of debt : Clifford, Inc., has a target debt–equity ratio of .85. Its WACC is 8.4 percent, and the tax rate is 35 percent. If the company’s cost of equity is 12.5 percent, what is its pretax cost of debt? If the aftertax cost of debt is 5.1 percent, what is the..
Detailed analysis of pyalongs industry : MPM735/935 - International Business Management - Detailed analysis of Pyalong's industry or the potential market for Pyalong's products - Accurate, timely and relevant information leading to opinion on whether Pyalong should seriously consider market..
List provisions in corporate charter that affect takeovers : What characteristics of the board of directors usually lead to effective corporate governance? List three provisions in the corporate charter that affect takeovers.
Why do you think no relationship was found : The results showed that there was no relationship between age and comprehension scores; all age groups had equally low comprehension scores. Why do you think no relationship was found? Identify at least two possible reasons.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd