Gross profit margin is much larger than the other firms

Assignment Help Financial Management
Reference no: EM131047456

ABC Corporation Corporation's (a large manufacturing firm) gross profit margin is much larger than the other firms in the industry. Which of the following is the most likely explanation? Firm A has a very old, very inefficient production facility. Firm A faces a higher tax rate. Firm A uses too much middle management. Firm A is the only firm in the industry that does not offer a 2-year warranty on their product Firm A has the only non-unionized workforce in the industry

Reference no: EM131047456

Questions Cloud

Source of cash flow from investing activities : Which of the following is a source of cash flow from investing activities? a decrease in accounts receivable an increase in accounts payable the sale of a 60-story office building in New York City the sale of new shares of common stock the purchase o..
Defective electrical appliances-defective automobiles : Jan graduates from EKU and starts her dream job as a CPA. Jan wants to impress her clients so her purchase is a new BMW convertible. Sadly, the car experiences multiple problems in the first few months Jan owns it and is in the shop more than it is o..
What was the most recent dividend per share paid on stock : Secolo Corporation stock currently sells for $77 per share. The market requires a return of 9.2 percent on the firm’s stock. If the company maintains a constant 2.6 percent growth rate in dividends, what was the most recent dividend per share paid on..
Find the future trends of bio-pharmaceutical companies : Find the future trends of bio-pharmaceutical companies, Gilead Sciences, Inc. , Amgen, Inc. Celgene Corporation, and Roche. What does the financial forecasts look like. Develop a table that shows this forecast.
Gross profit margin is much larger than the other firms : ABC Corporation Corporation's (a large manufacturing firm) gross profit margin is much larger than the other firms in the industry. Which of the following is the most likely explanation? Firm A has a very old, very inefficient production facility. Fi..
Considering two potential projects for the funds : Singing Fish Fine Foods has $2,000,000 for capital investments this year and is considering two potential projects for the funds. Project one is updating the deli section of the store for additional food service. If the appropriate discount rate for ..
The expected interest rate on one-year treasury security : The interest rate on a two-year treasury security is 4.7%, and the interest rate on a one-year treasury security is 6.06%. What is the expected interest rate on a one-year treasury security one year from now? State you answer as a percentage to two d..
Expected return standard deviation stock fund : A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.6%. The probability distributi..
The value of a put option at expiration equals the : The value of a put option at expiration equals the:

Reviews

Write a Review

Financial Management Questions & Answers

  What are the desired ending direct materials in pounds

If the required materials to be purchased are 18,000 pounds, the production needs are three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired endin..

  What is the value of each warrant

Thomson Engineering is issuing new 10-year bonds that have 20 warrants attached. If not for the attached warrants, the bonds would carry a 9% interest rate. However, with the warrants attached the bonds will pay a 7% annual coupon and still sell for ..

  What is the breakeven point in units

What is the breakeven point in units? In dollars? What is the contribution margin in percent? In dollars?

  What determines the value of a call provision

The core business of TVL Corporation is undergoing a difficult period. TVL bonds have been downgraded to CCC in order to reflect the higher probability of default the company now faces. TVL is considering a very promising (high NPV, low risk) capital..

  What was the cash flow from operating activities

W.C. Cycling had $55,000 in cash at year end 2010 and $25,000 in cash at year end in 2011. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing totaled +$170,000. What was the cash flow from operating activi..

  Why does the firms market value differ from its book value

Why does the firm’s market value differ from its book value? Do you know how to use the Internet to look up financial information on a company? See if you can find market value and book value for Apple.

  Short-term profits at the expense of long-term profits

Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.

  Days for these receipts to clear the banking system

Float Simon Corporation has daily cash receipts of $65,000. A recent analysis of its collections indicated that customers’ payments were in the mail an average of 2.5 days. Once received, the payments are processed in 1.5 days. After payments are dep..

  Which position you would take and why you expect to profit.

Assume that you want to speculate on how six month cash market LIBOR now equal to 1.95% will move over the next year. You believe that consensus forecasts of future rates are too high. You can enter into an FRA and agree either to pay 2.25 percent an..

  Inventory costing method

Which inventory costing method should a company use when it wants to minimize taxes? Does your response depend on whether prices are rising or falling? Explain your answer.

  Describe the operating cycle and the cash cycle

Explain the connection between a firm’s accounting-based profitability and its cash cycle? Describe the operating cycle and the cash cycle. What are the differences?

  Demand deposits and the required amount of capital

A bank originates $150,000,000 worth of 30-year single-family mortgages funded by demand deposits and the required amount of capital. Reserve requirements are 10 percent and the bank pays 32 basis points in deposit insurance premiums.

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