Jobs would have to be generated before a profit was made

Assignment Help Financial Management
Reference no: EM131303389

A business student wants to set up a business completing tax forms for other students. The price would be for $50 for each job. Fixed expenses include $395 for the purchase of tax software. Students would be hired to complete the forms paying them for two hours at $12 per hour per job. Paper and supplies would cost $5 per job. How many jobs would have to be generated before a profit was made?

Reference no: EM131303389

Questions Cloud

Use the black-scholes model to find price for call option : Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $28, (2) strike price is $35, (3) time to expiration is 2 months, (4) annualized risk-free rate is 6%, and (5) variance of stock ret..
The binomial model is better for complex situations : The Black Scholes model is simpler to use, but for complex situations, the binomial model is the necessary tool. The Black Scholes model is the simplest to use and the best used for complex situations. the binomial model is better for complex situati..
What is the cash collected in july : Consider a company that has sales in May, June, and July of $10.3 million, $12.3 million, and $9.3 million, respectively. The firm is paid by 35 percent of its customers in the month of the sale, 40 percent in the following month, and 22 percent in t..
What is the net present value of the refunding : The State of Idaho issued $2,000,000 of 7% coupon, 20-year semiannual payment, tax-exempt bonds 5 years ago. The bonds had 5 years of call protection, but now the state can call the bonds if it chooses to do so. The call premium would be 5% of the fa..
Jobs would have to be generated before a profit was made : A business student wants to set up a business completing tax forms for other students. The price would be for $50 for each job. Fixed expenses include $395 for the purchase of tax software. Students would be hired to complete the forms paying them fo..
Assume the before-tax component costs of equity : Suppose that MNINK Industries’ capital structure features 64 percent equity, 8 percent preferred stock, and 28 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 11.60 percent, 9.50 percent, and 9.00 percent,..
Shipping-installation costs of machine will be capitalized : KADS, Inc., has spent $470,000 on research to develop a new computer game. The firm is planning to spend $270,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $57..
Which type of bond would have the highest required return : Which type of bond is likely to have a price that remains fairly constant even if overall interest rates change? All else equal, which type of bond would have the highest required return? Who gets paid first if a company goes bankrupt?
Shares of stock outstanding selling : TAFKAP Industries has 3 million shares of stock outstanding selling at $15 per share, and an issue of $20 million in 8.5 percent annual coupon bonds with a maturity of 20 years, selling at 104 percent of par. Assume TAFKAP’s weighted average tax rate..

Reviews

Write a Review

 

Financial Management Questions & Answers

  How many years is it until this bond matures

The Lo Sun Corporation offers a 6.0 percent bond with a current market price of $809.50. The yield to maturity is 8.24 percent. The face value is $1,000. Interest is paid semi-annually. How many years is it until this bond matures?

  When computing the net present value of a capital project

Which one of these is a requirement when computing the net present value of a capital project?

  Explain portfolio return and standard deviation

Security A has an expected return of 8%t and a standard deviation of 20%. Security B has an expected return of 10% and a standard deviation of 50%.

  Corporate taxes capital structure theory

Consider a world where the M&M Corporate Taxes Capital Structure theory is true, then answer the following question. An all-equity firm currently has a market value of $622.09. The firm decides to issue debt in order to repurchases $126.48 in equity...

  Calculate the payback period-npv and irr

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $840 per set and have a variable cost of $440 per set. The company has spent $154,000 for a marketing study that determined the company will sell 58,000 sets per year ..

  What us the definition of a troubled debt restructuring

NYY corp., a calendar year firm, sold equipment to Red Sox nation Inc. on Jan 1, 2010 and received in return a note, due on Dec 31, 2013, with a face value of $1,000,000, and bearing interest at a standard rate of 3% per year. What us the definition ..

  Premium bond making annual payments

Bond X is a premium bond making annual payments. The bond has a coupon rate of 8.6 percent, a YTM of 6.6 percent, and has 19 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 6.6 percent, a YTM of 8.6..

  Receivables investment-sales outstanding

McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $715,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 50 days after their purchases. Assume 365 days in year for yo..

  Growth rate of share of common stocks dividends

If the expected constant growth rate of a share of common stock's dividends and per share price decreases, then according to the discounted cash flow approach to valuation, the price of the stock should:

  The dividends are expected to grow

A7X Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely. If the required return is 13 percent, what is the price of the..

  Accounts payable listing with voucher-supporting documents

In obtaining evidence in support of financial statement assertions, the auditor develops specific audit procedures to access those assertions. Compare selected amounts from the accounts payable listing with the voucher and supporting documents. Verif..

  Hedge the foreign currency value of the foreign asset

The basic approach to the use of currency futures is to hedge the foreign currency value of the foreign asset. To accomplish this, managers would sell short currencies in the amount of an asset’s value. buy long currencies in the amount of an asset’s..

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