Segment is divided into further segments

Assignment Help Financial Management
Reference no: EM13877906

How is it possible for a cost that is traceable to a segment to become a common cost if the segment is divided into further segments?

Reference no: EM13877906

Questions Cloud

Determine optimal capital budget for next year higher cost : The Marietta Corporation, a large manufacturer of mufflers, tailpipes, and shock absorbers, is currently carrying out its financial planning for next year. In about two weeks, at the next meeting of the firm’s board of directors, Frank Bosworth, vice..
Getting ready to produce a new line of gold clubs : McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $847,500, and $1,200,000 over the next three years. What is the payback period ..
A bond that pays interest annually yields rate of return : A bond that pays interest annually yields a rate of return of 5.75 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?
Segment is divided into further segments : How is it possible for a cost that is traceable to a segment to become a common cost if the segment is divided into further segments?
Present value of financial distress costs : The Ensyder Nursing Home (ENH) is a zero growth firm with an EBIT of $250,000 and a corporate tax rate of 40 percent. Suppose that the present value of financial distress costs is estimated to be $800,000, and that at a debt level of $1 million, ENH ..
What is the free cash flow from the project in year one : A new project is expected to generate $800,000 in revenues, $250,000 in cash operating expenses, and depreciation expense of $150,000 in each year of its 10-year life. The corporation’s tax rate is 35%. The project will require an increase in net wor..
Bond valuation-require effective annual interest rate : You are considering a 30-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate.

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the theoretical ex-rights price

Specify the terms of the planned issue, determine the theoretical ex-rights price and the expected value of a right and demonstrate that in principle a shareholder holding 100 shares will be equally well off by subscribing to the shares or by sellin..

  Coupon rate and semi-annual payment

A company's 8% coupon rate, semi-annual payment, $1,000 par value bond that matures in 25 years sells at a price of $619.33. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calcula..

  New return on equity

The common stock and debt of Northern Sludge are valued at $60 million and $40 million, respectively. Investors currently require a 17.0% return on the common stock and a 7.0% return on the debt.

  Increase in sales without raising funds externally

Carter Corporation's sales are expected to increase from $X in 2012 to $10 million in 2013. Its assets totaled $5 million at the end of 2012. Carter is at full capacity, so its assets must grow in proportion to projected sales. what was the firm's sa..

  Degree of operating leverage

The CFO of Jupiter Jibs (JJ) expects this year's sales to be $2.5 million. EBIT is expected to be $1 million. The CFO knows that if sales actually turn out to be $2.3 million, JJ's EBT will be $888,000. What is JJ's degree of operating leverage (DOL)..

  What is the amount of bid using borrowing and lending

What is the amount of bid using Options contract and how much of the revenue is exposed and what is the amount of bid using Borrowing and Lending

  What should be the yield to maturity on risk-free bonds

The rate of inflation for the next twelve months (Year 1) is expected to be 1.4%; it is expected to be 1.8% the following year (Year Two); and it is expected to be 2.0% every year after Year Two. Assume the real risk-free rate, r*, is 3 percent for a..

  The current ratio measures liquidity

Which of the following statements about financial statement analysis is(are) most correct? The current ratio measures liquidity.

  What is the marginal value of an additional unit of labor

Consider a resource-based economy which can allocate labor (L) to harvest timber (T) or fish (F). Assume the economy faces constant world prices for timber and fish, denoted Pt and Pf, respectively. How should labor be allocated to timber and fish pr..

  What is the IRR on this investment

Assume that your company negotiated a deal where it would pay $12,000 for the investment and receive a payment of $24,000 at the end of 7 years. What is the IRR on this investment? Should the company make the investment?

  Plans are subject to minimum funding requirement

Which of the following plans are subject to minimum funding requirement?

  Scrap value of the projects assets at the end of project

The management of Helberg Corporation is considering a project that would require an investment of $223,000 and would last for 6 years. The annual net operating income from the project would be $107,000, which includes depreciation of $16,000. The sc..

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