Calculate the firm profit margin

Assignment Help Microeconomics
Reference no: EM132796006

Suppose a linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms: the debt ratio and the profit margin. Based on past bankruptcy experience, the linear probability model is estimated as:

PDi = 0.18 (debt ratio) + 0.35 (profit margin)

You know a particular firm has a debt ratio of 35 percent and a probability of default of 8 percent. Calculate the firm's profit margin.

Reference no: EM132796006

Questions Cloud

What is the amount credited to share premium- ordinary : What is the amount credited to Share Premium- Ordinary? Ara company exchanges a piece of equipment for 2,000 shares of international company ordinary share
Define resilience and its application to nursing profession : Define resilience and its application to the nursing profession. Identify strateigies one can employ to foster resilience - Draw on the literature
What are the total fixed costs for strait co : In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, the total fixed costs are
What the number of equivalent units of production for period : What the number of equivalent units of production for the period for materials if the first-in, first-out method is used to cost inventories was
Calculate the firm profit margin : You know a particular firm has a debt ratio of 35 percent and a probability of default of 8 percent. Calculate the firm's profit margin.
What net income should Casino report for calendar : Their income tax rate has been 30% for many years. What net income should Casino report for calendar 2020
Calculate luis shop cash flow from operations : Calculate Luis shop's cash flow from operations for 2012 and help me with the Statement of Cash Flows. Luis Shop had cash outflows from investing activities
Identify audit procedures for uncovering contingencies : Your audit procedures have found the following review and assess the appropriate treatment. Provide the reason for your decision
Implications of the bailouts of the financial crisis : 1. What are the implications of the bailouts of the financial crisis? Is the system safer now, or can we expect another crisis in the future?

Reviews

Write a Review

Microeconomics Questions & Answers

  Determine how a policy will change social welfare

Determine how a policy will change social welfare, changes in individual utility for high-income individuals are weighted more heavily.

  Is the lm relationship required for its determination

Given a closed economy without a government sector, modify the IS-LM model by the assumption that saving and investment are identical (i.e. equal under all circumstances and not merely in equilibrium) and answer the following: What is the level of..

  Is there more than one potential equilibrium point

What happens to price and quantity when supply and demand change at the same time?

  Describe if free trade can ever be fair justify the

many americans feel that their jobs at home should be protected and that free trade should be limited. however global

  Discuss non-price competition within the industry

Discuss non-price competition within the industry. Describe the bargaining power of the company's suppliers and buyers. Describe the long-run goals of company.

  Is countrys foreign exchange overvalued or undervalued has

write 400-600 words that respond to the following questions with your thoughts ideas and comments. this will be the

  Has united states become more or less economically free in

1.what impact do natural resources have on economic growth? will it be possible for a country with few natural

  What number of workers appears to be most efficient

What number of workers appears to be most efficient in terms of pizza product per worker - What number of workers appears to minimize the marginal cost of pizza production assuming that each pizza worker is paid $500 per week?

  Describe a situation involving ergonomics

Describe a situation involving ergonomics that could be cited as a violation of the General Duty Clause. Explain where you would locate the four elements needed to prove such a violation and how your situation meets those four elements.

  Efficiency of the market outcome

The price charged to consumers, the average total cost of production and the efficiency of the market outcome

  Suppose a store is located in the middle of main street

(1) Suppose a store is located in the middle of Main Street, which is one mile long. Marginal transportation cost is given by t=$80 per mile round trip. The average production cost of the product sold is given by c=$32. Customers value each un..

  Effects of market shocks-price and quantity

For each of following changes, show/explain the effect on DEMAND CURVE and state what will take place to market equilibrium price and quantity (in the short run).

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