Gross profit margin is much larger than the other firms

Assignment Help Financial Management

Reference no: EM131047693

ABC Corporation Corporation's (a large manufacturing firm) gross profit margin is much larger than the other firms in the industry. Which of the following is the most likely explanation?

Firm A has a very old, very inefficient production facility.

Firm A faces a higher tax rate.

Firm A uses too much middle management.

Firm A is the only firm in the industry that does not offer a 2-year warranty on their product

Firm A has the only non-unionized workforce in the industry

Reference no: EM131047693

Questions Cloud

Advantage of transitioning firm from private business : Which of the following is NOT generally considered an advantage of transitioning a firm from a private business to a public corporation, despite the time and expense required to do so?

Write regression equation that can be used to predict sales : Use the above results and write the regression equation that can be used to predict sales. Estimate the sales volume for an advertising expenditure of 3.5 million dollars and 45 salespeople. Give your answer in dollars

Decision when raising capital : Which of the following is NOT a Stage II decision when raising capital

Identical sales and identical operating profit margins : Firms A and B have identical Sales and identical operating profit margins but B has a smaller net profit margin. Which of the following is the most likely explanation?

Gross profit margin is much larger than the other firms : ABC Corporation Corporation's (a large manufacturing firm) gross profit margin is much larger than the other firms in the industry. Which of the following is the most likely explanation?

Calculating the cost of equity : Calculating the Cost of Equity Smaltz Enterprises is currently involved in its annual review of the firm’s cost of capital. Historically, the firm has relied on the CAPM to estimate its cost of equity capital. Estimate Smaltz’s cost of equity capital..

What types of technology will be involve in the architecture : Identify what types of technology will be involved in the architecture and explain the purpose of each technology. Create a graphical representation of your recommended architecture.

Expected to pay the dividends-what is current share price : Lohn Corporation is expected to pay the following dividends over the next four years: $20, $16, $15, and $8.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 1..

What does this imply about forward premium or discount : Mexican interest rates are normally substantially higher than U.S. interest rates. What does this imply about the forward premium or discount of the Mexican peso?

User Account

All Pages