Is this growth rate sustainable

Assignment Help Financial Management

Reference no: EM131015949

In the TV episode Tim mentions that Grease Monkey Wipes have been on the market for a few months and they have sold 7,600 units with gross revenue is $7,400. In the update video Erin mentions that Grease Monkey Wipe has sold over 200,000 units and their sales have increased by over 700%. Is this growth rate sustainable? Provide facts or calculations to support your answer.

Reference no: EM131015949

Questions Cloud

What is the yield to maturity for bonds : Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 19-year to maturity, carry a 13.29 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that t..

Combinations of discount rates and times : Compute the present value of a $1,000 cash flow for the following combinations of discount rates and times:

What is the companys return on equity : Net profit magin = .053%. Equity Multiplier = 2.48. Total assets= $99 million. Sales=$159 million. What is the companys return on equity in % form.

Annual revenue-what is the present value of the savings : Your company will generate $63,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.50 percent, what is the present value of the savings?

Is this growth rate sustainable : In the TV episode Tim mentions that Grease Monkey Wipes have been on the market for a few months and they have sold 7,600 units with gross revenue is $7,400. In the update video Erin mentions that Grease Monkey Wipe has sold over 200,000 units and th..

If the yields on treasury bonds rise significantly : If the yields on treasury bonds rise significantly but there is no change in the outlook for economic growth and profits (and no change in investor risk aversion level or required risk premium) the stock market should

Expect the premium for bearing risk fall : Assume that you expect the premium for bearing risk fall in 2010. Explain whether that would result in a change in the discount rate for security investments (and other investments) in 2010 from the current level and what impact that might have on th..

Necessarily cause companys ROE to increase : Which of the following will necessarily cause a company’s ROE to increase?

Operate as financial intermediaries : All of the following operate as financial intermediaries EXCEPT

User Account

All Pages