The effect of taxes and what are fixed costs

Assignment Help Financial Management
Reference no: EM131451135

At an output level of 17,000 units, you have calculated that the degree of operating leverage is 2.20. The operating cash flow is $64,000 in this case. Ignoring the effect of taxes, what are fixed costs?

What will the operating cash flow be if output rises to 18,000 units?

What will the operating cash flow be if output falls to 16,000 units?

Reference no: EM131451135

Questions Cloud

What should be the price of preferred stock : If comparable yields are 9 percent, what should be the price of preferred B stock?
Find the cost of preference share and cost of debt : find the cost of equity by applying both Capital asset pricing model and gordon growth model. find the cost of preference share and cost of debt
What are the components of the lei : Define the LEI Index What are the components of the LEI? How do Economists use the LEI
Describe what research design should be adopted : Assume Kimmel decides to conduct a study to address the marketing research problem,describe what research design should be adopted?
The effect of taxes and what are fixed costs : The operating cash flow is $64,000 in this case. Ignoring the effect of taxes, what are fixed costs?
Prepare a common-size statement for the balance sheet : Analytical Procedures- Prepare a common-size statement for the balance sheet of Cloud 9, use total assets as the basis for the balance sheet.
What does the gdp indicate about an economy : What does the GDP indicate about an economy? Can a GDP be manipulated and thus provide inaccurate information about a country's economic production
Why do you think taylor did as little as he did the harasser : A black employee was subjected to a number of incidents at work, including racial epithets, threats, greasing of his truck, dead mice placed in his truck.
Proposed acquisition of computer numeric control machine : You have been asked by president by Company X to evaluate proposed acquisition of a Computer Numeric Control (CNC) machine to manufacture new type of alternator

Reviews

Write a Review

Financial Management Questions & Answers

  What are the imperfections of accrual accounting

what are the imperfections of accrual accounting? - is it possible for accrual accounting to depict economic reality? explain?

  Court settlement for a patent infringement

Your computer application company has won a court settlement for a patent infringement, you have a choice of taking $50,000 now or $1,000 paid monthly over a 5-year period. The current rate of return on fixed investments is an APR of 3% per year. Whi..

  Portfolio equally invested in risk-free asset and two stocks

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.53 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

  Constant growth valuation

Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $18 a share. The stock just paid a dividend of $3.25 a share (i.e., D0 = $3.25), and the dividend is expected to grow forever at a constant rate of 5% a year. What stock pric..

  Question 1 we want to value a 2 year interest rate swap

question 1 we want to value a 2 year interest rate swap assuming the floating side is reset every three months while

  Some serious credit card debt

Your neighbor has gotten into some serious credit card debt, and currently owes $18,742 with an interest rate of 19% APR. Making the minimum payment of $413 per month, how long will it take to pay off this loan? Enter answer in months, to two decimal..

  Income statement and statement of cash flows for a firm

You have been asked to evaluate the balance sheet, income statement, and statement of cash flows for a firm. If you had to choose only three financial ratios to conduct your preliminary analysis, which three ratios would you choose and why?

  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

  New product development stages for convenience goods

Because of expenses, the new product development stages for convenience goods should be reduced to idea generation, screening, and then, product development and commercialization (national roll-out).

  In hindsight it appears the natural resource-rich region

In 1867, the United States bought the Alaska territory from Russia at the urging of Secretary of State William H. Seward. The Russian government needed cash and feared the territory might eventually be lost due to conflict or encroachment. In hindsig..

  Calculate the operating break even point

a) Put together the complete income statement for the organic fertilizer line's first year. Is the line expected to be profitable? b) Calculate the operating break even point in both units and dollars. c) How many applications would Martin need to ..

  Established by how many copper futures contracts

Sparks Electrical has just won the contract to wire a new high rise office building to be built in Phoenix. The contract requires the purchase and installation of 1,125 thousand feet of copper wire. A properly constructed cross hedge is established b..

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