What is the degree of spreading leverages

Assignment Help Financial Management

Reference no: EM132007858

1. HAW Inc, may produce either $100,000 of net income or $130,000 of net income, depending on the economic, these profits are the result of annual sales of $1,200,000 or $1,800,000. what is the degree of spreading Leverages?

2. KMWinc, sells a finance textbook for $150 each. The variable cpst per book is $30 and the fixed cost per year is $30,000. The process of creating a textbook costs $150,000 and average book has a life spat pf 3 years. Using straight line depreciation and a tax rate of 25%, what is the economic break even number of the books must be sold given a discount rate of 12%?

3. A stock with risk equal to the market is expected to sell for $46 at the end of the year and pay a $2.00 Dividend at that time. If the risk free interest rate is 4% and the market risk premium is 7% what is the likely stock price today?

Reference no: EM132007858

Questions Cloud

How did it benefit the connection between school and home : What experiences have you had (as a child, parent, or educator) with family literacy nights? How did it benefit the connection between school and home?

Construct a graph showing supply and demand in tablet case : Construct a graph showing supply and demand in the tablet case market, using Microsoft Excel. How are the laws of supply and demand illustrated in this graph?

The central issues a public speaker : As our textbook posits, people determine meaning and thus, words can be decoded differently by people.

Create a budget for relevant expected costs : The senior management members have sent you their thanks and notes on your feasibility study for your proposed economic initiative.

What is the degree of spreading leverages : HAW Inc, may produce either $100,000 of net income or $130,000 of net income, what is the degree of spreading Leverages?

What is the price specie flow mechanism : Could you please explain for me what is the price specie flow mechanism and also I don't understand how the income effect the price specie flow mechanism?

Analyze the current environment of a health care : Use strategic management and knowledge management theory and research to analyze the current environment of a health care organization.

Discuss the disadvantages of international trade : International trade has been a great boon for many countries and, in general, has been more beneficial for the world than not.

Employment insurance alleviates poverty and redistributes : The extent to which Employment Insurance alleviates poverty and redistributes incomes depends on how the benefits are distributed and how the program is finance

User Account

All Pages