About opening lunchtime restaurant on busy street

Assignment Help Financial Management
Reference no: EM132045314

Salam is thinking about opening a lunchtime restaurant on a busy street. Salam estimates that all the restaurants on this street together serve 21,282 lunches on a typical day. Opening the new lunchtime restaurant will require $6,462 in fixed costs. Salam believes that he can earn a margin of $4.46 on each lunch his new restaurant serves. Calculate breakeven MARKET SHARE for Salam's new restaurant. Report your answer as a percent. Report 25.5%, for example, as "25.5". Rounding: tenth of a percent.

Reference no: EM132045314

Questions Cloud

Conduct the etl with cooperate information factory : What is the difference when conduct the ETL with Cooperate information factory and business dimensional lifecycle?
What should the price of terrier nation stock be today : If Terrier Nation’s equity cost of capital is 18%, what should the price of Terrier Nation’s stock be today?
Explain what is labor management repost : One or two sentence responses such as "Hi, welcome to the course!" or "I feel the same way" are not acceptable.
Strategy for the entire human resource team : What would be advantages and disadvantages of the Human Resources department if they had individual strategies or if there should be one overarching strategy
About opening lunchtime restaurant on busy street : Salam is thinking about opening a lunchtime restaurant on a busy street. Calculate breakeven MARKET SHARE for Salam's new restaurant.
What would be advantages and disadvantages of organization : What would be advantages and disadvantages of an organization's Human Resources department aligning its strategy with the overall organizational strategy?
Discuss about globally optimized operations : To be considered substantive, your reply should add significantly to the discussion by building on others' comments, pointing out similarities or differences.
What is the concept of globally right source : What is the concept of Globally Right source and how can an organization use this to add value to their activities to increase their competitive positions?
Briefly define business rules : Identify all involved in the database system so your ERD accurately "captures" the entire process, actors, and relationships.

Reviews

Write a Review

Financial Management Questions & Answers

  The fund and expects to have cash inflows

Monty has been hired to run a pension fund for Dasdin Company Limited, a small manufacturing firm. The firm currently has 5 million in the fund and expects to have cash inflows of $2 million a year for the first 5 years followed by cash outflows of $..

  Contemplating leasing diagnostic scanner

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $6,500,000, and it would be depreciated straight-line to zero ove..

  Projections given for price-quantity-variable costs

You are evaluating a project that costs $840,000, has seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $40, vari..

  The risk-free rate have to be for the two stocks

What would the risk-free rate have to be for the two stocks to be correctly priced?

  Why whole life insurance policy requires a larger premium

Develop a set of family circumstances where each of term insurance and whole life insurance are the most appropriate type of policy to meet the consumer's needs. Explain why a whole life insurance policy requires a larger premium than a term insuranc..

  Risk that cannot be eliminated through diversification

Risk that cannot be eliminated through diversification is called ______ risk

  Compute weighted average cost of capital

Assume debt and common equity each represent 50 percent of the firm’s capital structure. Compute the weighted average cost of capital.

  About the target debt-equity ratio

Benjamin Manufacturing has a target debt-equity ratio of .64. Its cost of equity is 13.1 percent, and its cost of debt is 8.1 percent. Required: If the tax rate is 34 percent, what is the company’s WACC?

  Example of derivative security

Which of the following would be an example of a derivative security? Which of the following bank accounts has the highest effective annual return?

  What rate will give you same effective annual rate of return

You are currently earning 12% compounded semiannually. Your investment company is switching all accounts to daily compounding. What rate will give you the same effective annual rate of return as you are receiving now?

  Dividends-what is the current share price

Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 7.4 percent thereafter. Required: If the required return is 16 percent and the company just..

  What was your dividend yield on this stock

One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 25 percent. Your capital gain was $6 a share. What was your dividend yield on this stock?

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