The percentage of sales forecasting method

Assignment Help Financial Management
Reference no: EM131346235

The percentage of sales forecasting method is used by management to forecast the amount of

a. profit expected for a given percentage increase in sales

b. capital financing needed to promote marketing efforts

c. cash needed to finance future sales growth

d. debt financing needed

Reference no: EM131346235

Questions Cloud

The cost of debt capital for a firm : The cost of debt capital for a firm
Monthly payments occurring one year from today : You recieve a payment today of $2,000,000, and then monthly payments of $35,000 each for 4 years (48 total monthly payments), with the first of the monthly payments occurring one year from today. If you use a discount rate of 2.28% APR with monthly c..
What is the present value as of today : You recieve a payment today of $2,000,000, and then monthly payments of $35,000 each for 4 years (48 total monthly payments), with the first of the monthly payments occurring one year from today. If you use a discount rate of 2.28% APR with monthly c..
What is investment in risk-free asset : You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. What is the investment in risk-free asset? What is the investment in Stock C?
The percentage of sales forecasting method : The percentage of sales forecasting method is used by management to forecast the amount of
Use the net present value method : Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). The asset will cost $120,000, and it will produce earnings before depreciation and taxes of $37,000 per year f..
Expansion project-requires initial fixed asset investment : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.43 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..
Use of accounts payable financing : Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt–equity ratio of .62. It’s considering building a new $71.7 million manufacturing facility. A new issue of common stock. If the tax r..
What is maximum cost the company would be willing to pay : Hankins, Inc., is considering a project that will result in initial aftertax cash savings of $6.5 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. What is the maximum cost the company wou..

Reviews

Write a Review

Financial Management Questions & Answers

  Nominal cost and effective cost

Grunewald Industries sells on terms of 3/10, net 50. Gross sales last year were $4,319,000, and accounts receivable averaged $404,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of ..

  Production cost per door stopper for september

Bellfont Company produces door stoppers. In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont’s production cost per door stopper for September?

  What is your average tax rate and marginal tax rate

Now, assume you are instead given a $500,000 investment portfolio when your grandmother dies. Rather than working, you decide to invest the assets using your extensive investment knowledge gained during your time at NAU. What is your average tax rate..

  Risk and return-coefficient of variation

Risk and Return, Coefficient of Variation. Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship:

  Leveraged buyouts follow a simple model

"Leveraged buyouts follow a simple model - the PE firm acquires a listed firm, delists it, loads it up with debt and sell it off to the market. Given that the equity contribution is so low - there is virtually no risk to the private equity firm." Com..

  What is the list price of the bond on the settlement date

Calculate the price of the bond for a market interest rate of 3% per half year. Compare the capital gains for the interest rate decline to the losses incurred when the rate increases to 5%. A bond with a settlement date of April 30, 2013 and a maturi..

  About the finance charge

Samir purchased a car for $40,000. He made a down payment of $18,000 and paid $694.47 monthly for 3 years. Find the APR from the table below. Finance charge per $100 of amount financed

  Exact expected real risk premiums on the portfolio

Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .22 .30 .42 .58 Normal .46 .23 .21 .19 Bust .32 .01 −.22 −.50 a-1 If your portfolio is..

  New debt-how many shares does it have after the recap

Dye Trucking raised $230 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.75. If Dye had 80 million shares of stock before the recap, how many shares does it have after the recap?

  Describes portfolio that plots above security market line

Which of the following describes a portfolio that plots above the security market line? . A. The security is overvalued. B. The security is undervalued. C. The security is providing a return that is less than expected. D. The security’s beta is too h..

  What are the project annual cash flows

You must evaluate a proposal to buy a new milling machine. The base price is $101,000, and shipping and installation costs would add another $8,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $35,350. What a..

  What was wal-marts original strategy for creating value

What was Wal-Marts original strategy for creating value and how sustainable is the company's competitive advantage?

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