Produces electronic control equipment

Assignment Help Financial Management

Reference no: EM132062884

1. The company “ABC”, produces electronic control equipment, it uses 1,600 units annually of a certain product. The cost of the order is $50 per order, and the maintenance cost is $1 per unit a year (annual cost of maintenance is 25%, purchasing price is $4 per unit). Determine the EOQ.

Can you show me the procedure?

2. If the debt ratio is 50%, the interest rate on all debt is 8%, the tax rate is 50%, and the ROE is 10%, then the ratio of EBIT to total assets, or the basic earning power ratio, must be

Can you show the procedure?

3. Howell Enterprises is forecasting EPS of $4.00 per share for next year. The firm has 10,000 shares outstanding, it pays 12% interest on its debt, and it faces a 40% marginal tax rate. Its estimated fixed costs are $80,000 while its variable costs are estimated at 40% of revenue. The firm’s target capital structure is 40% equity and 60% debt and it has total assets of $400,000. On what level of sales is Howell basing its EPS forecast.

Can you show the procedure?

Reference no: EM132062884

Questions Cloud

Explains the general shape of the yield curve of bond : Which of the following explains the general shape of the yield curve of a bond?

Elements of business communication and business relationship : Assist one of your female managers from India in adjusting and communicating well with businesspeople in a South American country of your choice.

Analyze the competitive advantage of your selected company : Evaluate the strategies your selected company uses to create value and gain competitive advantage.

Define the current state of motivation for employees : The vice president (VP) of marketing has hired you as the leader whose first task involves implementing a new process for applying customer service.

Produces electronic control equipment : The company “ABC”, produces electronic control equipment, it uses 1,600 units annually of a certain product.

Write a proposal of your volunteer arrangements : What questions will you ask? What does volunteering entail? What date(s) and time(s) is it scheduled?

Discuss the economic implications of tourism : Discuss the economic implications of tourism on a country's economy. What are the possible negative effects? Your essay responses should be at least 200 words.

Explain your specific leadership role that currently hold : Provide a vision statement that models the desired future state of the organization you would like to lead.

Savings instead of paying off your credit card debt : Explain why you might be tempted to deposit your winnings into savings instead of paying off your credit card debt.

User Account

All Pages