About the financial break-even point

Assignment Help Financial Management
Reference no: EM131510887

Niko has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of five years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $550,000. The sales price per pair of shoes is $60, while the variable cost is $14. $160,000 of fixed costs per year are attributed to the machine. Assume that the corporate tax rate is 34 percent and the appropriate discount rate is 8 percent. What is the financial break-even point? (Do not round intermediate calculations and round your final answer to nearest whole number (e.g., 32).) Financial break-even point units

Reference no: EM131510887

Questions Cloud

How much more is the bond worth : How much more/(less) is the bond worth if it is assumed the bond will be called than if it will not be called?
Calculate the present value of the bond : Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. Calculate the present value of the bond.
What is present value of his consulting contract : If Mr. Moore’s opportunity cost (potential return) is 10 percent, what is the present value of his consulting contract?
Find the annual percentage rate the store announces : Find the annual percentage rate the store announces to its customers.
About the financial break-even point : Assume that the corporate tax rate is 34 percent and the appropriate discount rate is 8 percent. What is the financial break-even point?
What is the future value at the end of year : What is the future value at the end of year 15 of $10,000 deposited today into an account that pays interest of 4.5% p.a., but with daily compounding?
What was the original issue price and current value : North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $7 per share. What was the original issue price?
What is the break-even cost per kilowatt-hour : You require a return of 9 percent and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour?
What is the required rate of return on the preferred stock : Stagnant Iron and Steel currently pays a $14.75 annual cash dividend (D0). What is the required rate of return (yield) on the preferred stock?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the level payments

At time t=2, an extra payment of 165.93 is made and the loan is refinanced at 10% with only 3 more level payments. Calculate the level payments.

  Corresponding type of challenge typically faced

Identify the correct pairing of the type of state and the corresponding type of challenge typically faced.

  The grade appeal process at a university requires

The grade appeal process at a university requires that a jury be structured by selecting seven individuals randomly from a pool of 13 students and 13 faculty. What is the probability of selecting a jury of all students? what is the probability of sel..

  What is the total dollar amount of interest

Three years ago you purchased a corporate bond that pays 6.40 percent annual interest. The face value of the bond is $25,000. What is the total dollar amount of interest that you received from your bond investment over the three-year period? (Do not ..

  Future prices of stock are modeled with period binomial tree

Future prices of a stock are modeled with a one-period binomial tree, the period being one year.

  Using the departmental cost-charge ratios and variable cost

Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the foll..

  Think the future potential of the stock warrants

Choose a stock that is publicly traded and explain how you think the future potential of the stock warrants the price it sells at today?Calculate the current return on a stock of your choice and compare it to returns on bonds. Which is better to inve..

  What happens to each of the components of aggregate spending

Explain what happens to each of the components of aggregate spending: consumption, investment, government purchases, and net exports.

  Complete the proof of no arbitrage lemma for equality cases

Complete the proof of the “no arbitrage lemma” for the equality cases. We know for the put-call-parity that an European call is equivalent to an European put plus a future that have the same strike price and maturity assuming the underlying stock pay..

  What is financial break-even point for your enterprise now

Your buddy comes to you with a sure-fire way to make some quick money and help pay off your student loans. His idea is to sell T-shirts with the words “I get” on them. What is the accounting break-even point if each shirt costs $4.70 to make and you ..

  What is the first offer post-money valuation of the firm

What is the first offer's post-money valuation of the firm? What is the second offer's post-money valuation of the firm? What is the difference in the percentage dilution caused by each offer?

  What must the expected return on this stock be

A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be?

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