Compute the contribution margin

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1 The Amazing Co. has the following capital structure.
Stock $100 mil with a P/E of 10
Bonds $50 million at 8 %
The company has a tax rate of 30%
What is the weighted average cost of capital (WACC)?

2 What is the present value of $ 4 million due 4 years from now if the cost of capital is 10%?

3. Atlantic Airlines has a profit before taxes of $1 million flying at 80% of capacity with revenue of $100 million, fixed cost of $69 million and variable cost of $30 million. What is the before tax profit at 90% capacity?
What is the contribution margin in dollars of Atlantic Airlines at revenue of$100 million?

5 If an organization collects 70% of Sales within a month and the balance within 2 months. What would it collect in March if it sold: $160,000 in January, and $140,000 in February?

 

Reference no: EM1359039

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