Factors does not affect a firm''s business risk

Assignment Help Financial Management
Reference no: EM131070917

Which of the following factors does not affect a firm's business risk?

a. Demand variability.

b. Input price variability.

c. Interest cost variability.

d. Operating leverage.

e. Sales price variability.

Reference no: EM131070917

Questions Cloud

Price of specific products in different locations : Sometimes, analysts use the price of specific products in different locations to compare currency valuation and purchasing power. For example, the Big Mac Index compares the purchasing-power parity of many countries based on the price of a Big Mac..
If debt financing is used : If debt financing is used, The percentage change in net operating income is greater than a given percentage change in net income. The percentage change in net operating income is equal to a given percentage change in net income. The percentage change..
Used as the initial cash flow for net working capital : Ultimate Home Appliance Emporium is expanding its product offerings in order to satisfy a wider range of customer tastes and styles. The expansion project includes increasing the floor inventory by $610,000 and increasing its debt to suppliers by 75 ..
Capital structure and degree of leverage analyses : Which of the following are practical difficulties associated with capital structure and degree of leverage analyses?
Factors does not affect a firm''s business risk : Which of the following factors does not affect a firm's business risk?
Report on the benefits of implementing a new health : You have been asked by your health care organization to provide a detailed report on the benefits of implementing a new health information technology system to comply with the current mandates.
What do you see as the future for labor unions in the u.s. : Over U.S. history, labor unions have shifted in power and membership (e.g., high in some eras and low in others). What do you think contributes to this shift in power and growth?
Physical movement of goods : Supply chain management is less about managing the physical movement of goods and more about managing information. Discuss the implications of this statement.
Summarizing the purpose for the study : After reading the article and briefly summarizing the purpose for the study, answer the following questions:

Reviews

Write a Review

Financial Management Questions & Answers

  The price-weighted index

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

  Bond using both duration and convexity to estimate

The price of a 5-year semannual-coupon bond is $$131.5184. Its duration and convexity are 4.3476 and 20.5562, respectively. If interest rates go up by 1%, what will be the dollar change in the price of this bond using both duration and convexity to e..

  Annual effective rate-calculate the present value

Calculate the present value at time 0 of payments that are received continuously over each year for ten years. The payment is $100 during the first year, $105 during the second year, $110 during the third year, and so on, up to the last payment of $1..

  What is the horizon or terminal value

Hart Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of 15% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 19%. What is the horizon or terminal value?

  The market risk premium and risk-free rate

The Saunders Investment Bank has the following financing outstanding. Debt: 30,000 bonds with a coupon rate of 9 percent and a current price quote of 114.0; the bonds have 20 years to maturity. 200,000 zero coupon bonds with a price quote of 19.0 and..

  What is the companys cost of equity

The Absolute Zero Co. just issued a dividend of $3.15 per share on its common stock. The company is expected to maintain a constant 6.5 percent growth rate in its dividends indefinitely. If the stock sells for $63 a share, what is the company’s cost ..

  What is their total mortgage payment-principal-interest

Mary and Carlos want to buy a $400,000 house. They have $50,000 for a down payment. Their lender is offering them a 30 year mortgage at 6.2%. What is their total mortgage payment (principal & interest + escrow)?

  Value a constant growth stock financial analysts forecast

Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 14.00 percent. Their recent dividend was $2.43. What is the value of their stock when the required rate of return is 16.00 percent?

  What was the holding period return for the stock

A stock has had returns of 17.52 percent, 12.36 percent, 6.36 percent, 27.82 percent, and −13.89 percent over the past five years, respectively. What was the holding period return for the stock?

  What is the organization hierarchy

What is the Organization hierarchy and explain the Multi Org Concept and how it has evolved? Revaluation and Translation. What are recurring journals and what are the different types of recurring journals. Explain the Journal Import process

  Injecting huge liquidity and there is no fear of inflation

We have the Fitzpatrick bond which has a convexity of 30, duration of 4, a ytm of 12% and a maturity of 25 years. The central bank is injecting huge liquidity and there is no fear of inflation. If the yields alter by 100 basis points, what would the ..

  Compute the cash flow for simonses

Simonses, Co has a gross profit of $1,100,000 and $570,000 in depreciation expense. Selling and administrative expense is $340,000. They have $500,000 in Long-term debt at 5% interest with no principal payments. Given that the tax rate is 42 percent,..

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