Fixed assets or sales ratio, Finance Basics

Assignment Help:

Last year Nymphe Technologies had $450 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%.  However, its fixed assets were used at only 75% of capacity.  While forecasting the results for the next year, the company wants to set its target Fixed Assets/Sales ratio at the level it would have realized had it been operating at full capacity.  What target FA/Sales ratio should the company set?


Related Discussions:- Fixed assets or sales ratio

Captive insurance, discuss the meaning and advantage of captive insurance

discuss the meaning and advantage of captive insurance

Replacement of old school buses , Identify one each (1) benefit, (2) disbe...

Identify one each (1) benefit, (2) disbenefit, and (3) monetary cost that would impact each of the following projects: a.A new electrical distribution station in a developing pa

Operating cycle, Discuss the applicability of an operating cycle in the veg...

Discuss the applicability of an operating cycle in the vegetable growing business

Computer the fair value of the stock, Future Ltd is a leading music enterta...

Future Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year just ended few days back,

Compute Interest Assignment, Based on the example in Lesson 2, compute your...

Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g

Capital to debt issuers, In 1998, the Syndicated Bank Loan market (defined ...

In 1998, the Syndicated Bank Loan market (defined as loans having more than two bank lenders) was a vast and cheap source of debt financing for U.S. corporations.  This market was

THE CASE OF THE MISSING BONDS RATING, Three of these companies have bonds t...

Three of these companies have bonds that carry investment - grade ratings. The other 3 companies carry junk - bond ratings. Judging by the information in the table, which 3 compani

Important points for capital market authority, Important Points for Capital...

Important Points for Capital Market Authority Apart from the above roles, CMA can assume the given steps to encourage progress of stock exchanges in US or other countries.

capm model is not suitable in an international setting, Why do several cri...

Why do several critics say the CAPM model is not suitable in an international setting? Please describe a way that the CAPM model could be adapted for international applications.

Write Your Message!

Captcha
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