Reference no: EM131595108
1. You decide to create your own business designing and printing t-shirts. The fixed costs, including the design software, printing press and renting a small space for storage, are $750. Variable costs per shirt are $3.25. If you sell each shirt for $7, how many do you need to sell to make $500 in profit?
2. Apple wants to create the new iCar, a driverless car, by 2020. Assume that fixed costs (research & development, the building of a factory, the purchasing of equipment, safety testing, etc) for such a project totals $10B. If the company anticipates sales of 600,000 cars with variable costs per car of $75,000, how much does each car need to sell for to break even?
3. If a company stated in its annual report to shareholders that it made efforts to recapitalize (that is, change the capital structure) to a higher amount of leverage, you could certainly look at the balance sheet to verify this. What other financial statement, the income statement or statement of cash flows, would also show evidence? Give an example of what the evidence might look like?
|
What is the price per share of the company stock
: Ward Corp. is expected to have an EBIT of $2,350,000 next year. What is the price per share of the company's stock?
|
|
Expansion project-requires initial fixed asset investment
: Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million.
|
|
Which company is more at risk of becoming insolvent
: How about Company B? Only taking this analysis into account, which company is more at risk of becoming insolvent?
|
|
Owner you must serve as compensating control
: She recommends you improve controls and says that as owner you must serve as a compensating control.
|
|
How much does each car need to sell for to break even
: Apple wants to create the new iCar, a driverless car, by 2020. how much does each car need to sell for to break even?
|
|
Prepared to make monthly payments
: You’re prepared to make monthly payments of $270, How many payments will you have made when your account balance reaches $18,000?
|
|
Lowest standard deviation for any risk premium
: The portfolio with the lowest standard deviation for any risk premium is called the_______.
|
|
Your realized return for this period
: On January 1, you purchased 10,000 shares of a stock at $15 ½ per share. Your realized return for this period is:
|
|
What is the proper entry to record this transaction
: A company makes a $30,000 sale on account but with a 10% cash down payment. What is the proper entry to record this transaction?
|