Powell''s target fixed assets to sales ratio

Assignment Help Financial Management
Reference no: EM131591169

Last year Powell Manufacturing utilized its fixed assets of $2,415,000 to 72 percent of their capacity in generating sales of $12,420,000. What is Powell's target fixed assets to sales ratio?

12.6%

14.0%

16.3%

19.4%

28.0%

Reference no: EM131591169

Questions Cloud

Reinsure part of insurer risks : Occasionally, Insurer X will reinsure part of Insurer Y’s risks, and Insurer Y will reinsure part of Insurer X’s risks.
What is your portfolio return for the year : You buy 100 shares of Apple stock at $3 and 200 shares of Boeing stock at $3. What is your portfolio return for the year?
Evaluate feasibility of procedure for a health care facility : In a substantial post to each, evaluate the feasibility of putting together their recommended policy and/or procedure for a health care facility.
What profit margin do they have to hit to make plan work : what profit margin do they have to hit to make this plan work?
Powell''s target fixed assets to sales ratio : Powell's target fixed assets to sales ratio?
What is its unlevered beta : Angel Enterprises has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, what is its unlevered beta?
Calculate the consumer surplus and producer surplus : ECO10250 - What is the equilibrium price and quantity in this market for ice creams and calculate the consumer surplus and producer surplus at the equilibrium in this market.
Example of company that has any kind of agency conflict : Research and provide an example of a company that has any kind of agency conflict.
Which rate of return does investor expect : Green Company's common stock is currently selling for $64.35 per share. Which rate of return does investor expect to receive on stock if it is purchase today?

Reviews

Write a Review

Financial Management Questions & Answers

  What must the dividend payout ratio be

Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm maintains a constant debt-equity ratio of .55, a total asset turnover ratio of 1.30, and a profit margin of 9 percent. What must..

  Dividends are expected-what is current value of one share

Nu-Tech stock's last annual dividend was $1.10 a share. Dividends are expected to increase by 25 percent for the next two years and then increase at a constant 4 percent annually. The required return on this high-risk stock is 18.5 percent. What is t..

  Short-term investments made possible by freed-up cash

How much can the firm earn in dollars per year on short-term investments made possible by the freed-up cash?

  Capital structure weights on a book value basis

Erna Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. Erna Corp. also has two bond issues outstanding. What are Erna’s capital structure weights on a book value basis?

  Different between order and delivery

Ticho Gas and Electric is required to carry a minimum of 20 days’ average coal usage, which is 100 tons of coal. It takes10 days between order and delivery. At what level of coal would TG&E reorder?

  About as risky as the firm existing assets

Empire Electric Company (EEC) uses only debt and common equity. These two projects are equally risky and about as risky as the firm's existing assets.

  What is common-size statement value of inventory

What is the common-size statement value of inventory?

  Sales compare to the accounting break-even sales level

A firm with 60% of sales going to variable costs, $1.5 million fixed costs, and $500,000 depreciation and sales of $3 million. How does the current level of sales compare to the accounting break-even sales level?

  What rate of return will they have to achieve in retirement

What rate of return will they have to achieve in retirement to maintain their goal with inflation?

  Ordinary shares outstanding-current assets-gross margin

Compute the ratios using the methods described in this class (which may not always give you the same number as shown in Key Ratios). Note that sales = Total Revenue, and Shares outstanding is reported at the end of the Balance Sheet as “Ordinary Shar..

  Compute the equilibrium futures price

Compute the equilibrium futures price for the S&P futures contract maturing in exactly six months.

  The taxadvantage of debt and bankruptcy-cost

There are several reasons why the capital structure (that is, the relative size of debt and equity) may affect the value of the firm. These include (I) the taxadvantage of debt, (II) bankruptcy-cost, (III) agency cost of equity, (IV) agency cost of d..

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