The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $69.14. The variable cost per unit is $25.90, Poseidon Swim has average fixed costs per year of $6,839

Assume that current level sales is 367 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by 8.2 percent? (You should calculate the degree of operating leverage first).

The spot exchange rate of an australian dollar : Assume that the U.S. one-year interest rate is 3% and the one-year interest rate on Australian dollars is 6%. The U.S. expected annual inflation is 5%, while the Australian inflation is expected to be 7%. You have $100,000 to invest for one year and .. |

After supply and demand for the japanese yen : The inflation rate in the U.S. is 4%, while the inflation rate in Japan is 1.5%. The current exchange rate for the Japanese yen (¥) is $0.0080. After supply and demand for the Japanese yen has adjusted according to purchasing power parity, the new ex.. |

What is its net interest margin : Suppose a bank earns $325 million in interest revenue but pays $279 million in interest expense. It also has $624 million in earning assets. What is its net interest margin? |

What will be effect of overstating the beginning inventory : Alpha Company's beginning inventory should have been $85,000, but instead, the bookkeeper listed it as $95,000. The manager told the bookkeeper not to "worry" about the mistake, because it would resolve itself in the following year. What will be the .. |

What will be the resulting percentage change in ebit : The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $69.14. The variable cost per unit is $25.90, Poseidon Swim has average fixed costs per year of $6,839. Assume that current level sales is 367 u.. |

The resulting percentage change in earnings per share : Use the following information about Rat Race Home Security, Average selling price per unit $301. Variable cost per unit $190. Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc... |

In a period of heightened price volatility-what is a buyback : In a period of heightened price volatility, the beta of the market will: What is a buyback? What is a bank? |

What is effective annual cost of firms current practice : justo Ltd buys on terms 1.5/10, net 30 days. It does not take discounts, but it typically pays 20 days after the invoice date, instead of waiting until Day30. Justso can borrow from the bank at a rate of 18% per annum. If justso is notaking discounts.. |

What is the remaining balance that must be paid off : An firm borrowed $153,000 to remodel their office. The load was to be paid back in equal monthly payments over 30 years at 5% interest, compounded monthly. After 7 years, the firm wants to pay off the loan. What is the remaining balance that must be .. |

## Compute milts recognized gain or loss on the saleMilt Payner purchased an automobile several years ago for $40,000 and has held it as a personal asset ever since. This year he sold the automobile. Compute Milt's recognized gain or loss on the sale if: a. Milt's amount realized on sale was $28,300. .. |

## What will be effective real rate of return on bank accountA bank account promises a 6.7% annual interest rate on deposits. At the same time, the rate of inflation is expected to be 2.1%. What will be the effective real rate of return on the bank account? |

## Remain the same except for the correlation coefficientConsider two stocks. If all their characteristics remain the same except for the correlation coefficient, which value of the correlation would make a portfolio of these two stocks the least risky? |

## Capital gains yield and dividend yieldSuppose you know a company's stock currently sells for $70 per share and the required return on the stock is 16 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's th.. |

## What is the dollar amount of incomeLondon purchased a piece of real estate last year for $85,000. The real estate is now worth $103,500. If London needs to have a total return of 0.20 during the year, then what is the dollar amount of income that she needed to have to reach her object.. |

## Maintain a weighted average cost of capitalWebster's Watering Hole must maintain a weighted average cost of capital of 9% to satisfy covenants in the bond indenture. Analysts forecast the after tax cost of debt of 5% and a cost of equity of 11%. What debt-equity ratio must be employed to meet.. |

## Loan is to be repaid in level installments payableA loan is to be repaid in level installments payable at the end of each year for 7 years. The effective annual interest rate on the loan is 4%. After the 4th payment the principal remaining is $5000. Find the amount of the loan. |

## How will this choice affect the cost of debenturesA firm must raise $100million, all of which will be used to construct a new plant. It is debating the sale of first mortgage bonds or debentures. If it decides to issue $50million of each type, as opposed to $75 million of first mortgage bonds and $2.. |

## Calculating the present value and future value of a lump sumDescribe in detail the differences and similarities in calculating the present value and future value of a lump sum, annuity, perpetuity and A series of unequal (multiple) cash flows. |

## Use cash to pay off current liabilitiesModern Medical Devices has a current ratio of 0.5. Which of the following actions would improve (i.e., increase) this ratio? Select one (A-E): A. Use cash to pay off current liabilities. B. Collect some of the current accounts receivable. Assume that.. |

## Produce an inflow after operating costsA factory costs $800,000. You reckon that it will produce an inflow after operating costs of $170,000 a year for 10 years. If the opportunity cost of capital is 14%, what is the net present value (NPV) of the factory? |

## What is the incremental profitSchweser Satellites Inc. produces satellite earth stations that sell for $100,000 each. The firm’s fixed costs, F, are $2 million, 50 earth stations are produced and sold each year, profits total $500,000, and the firm’s assets (all equity financed) .. |

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