What does the breakeven point tell the organization

Assignment Help Finance Basics
Reference no: EM131532990

A firm evaluates its breakeven points and degrees of leverage to assess the risk associated with its forecasts.

  • What does the breakeven point tell the organization?
  • What are suggestions for changing the breakeven point?
  • How does this impact the overall financial decisions of the organization?

Reference no: EM131532990

Questions Cloud

Corporation maintain and improve its competitive advantage : There are basically two major areas of finance - managerial finance and financial services. A review of both areas will help us better understand finance.
The most significant effect of injuries : What is the most significant effect of injuries to or abnormalities in the hypothalamus on behavior? Why is this effect the most significant?
Prepare the appropriate journal entries for desoto company : Spare Parts was organized on May 1, 2011, and made its first purchase of merchandise on May 3. The purchase was for 1,000 units at a price of $10 per unit.
What do you feel are the most important areas of security : What do you feel are the most important areas of security provided by this model, and why are these areas of security important to an organization?
What does the breakeven point tell the organization : A firm evaluates its breakeven points and degrees of leverage to assess the risk associated with its forecasts.
Prepare entries for spare parts to record the sale : Spare Parts was organized on May 1, 2011, and made its first purchase of merchandise on May 3. The purchase was for 1,000 units at a price of $10 per unit.
Write a definition essay post on the term motivation : write a definition essay post on the term motivation. In this essay post, you will define what it means to you to be motivated as a college
How would you address this for the organization : As a finance manager, how would you address this for the organization? What can be done to ensure that the cash is not idle, but enough cash is on-hand daily?
Write a python program that generates a small web site : ICT112 Assignment - Generated Web Site for Sports Club. Your task is to write Python program that generates small web site for local sports club

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the npv of the investment

It will be sold for 25,000 at the end of 5 years. Add'l inventory of 11,000 will be required for parts and maintenance of new machine. The company evaluates all projects at this risk level using an 11.99% required rate return. Tax rate is expected..

  How much will be paid to common stockholders

Nathan's Athletic Apparel has 1,000 shares of 7%, $100 par value preferred stock the company issued at the beginning of 2011.

  What is the firm net income

In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $8,000 of capital expenditures

  Discuss the implications of a firm using debt versus equity

Discuss the implications of a firm using debt versus equity for funding purposes. Include the important risk and valuation implications. Illustrate the concept using the example of your study company.

  Company dividend payment per share year

What is the company's dividend payment per share this year? Round your answer to two decimal places.$ Assuming that GMC's stock price is $54 per share immediately before its ex-dividend date, what is the expected price of GMC stock on the ex-divid..

  What is rollins cost of preferred stock

The firm's policy is to use a risk premium of 4percentage points when using the bond-yield-plus-risk-premiummethod to find ks. Flotation costs on new common stock totals 10percent, and the firm's marginal tax rate is 40 percent.

  Find the aw of this process

Assuming a MARR of 18% per year. Find the AW of this process.

  How can leasing allow a firm to effectively depreciate land

How can leasing allow a firm to effectively "depreciate" land?- What effect does leasing have on the stability of a firm's reported earnings?

  Time value of money and setting aside money for buying

You just won the lottery! As your prize you will receive $1,200 a month for 100 months. If you can earn 8% on your money, what is this prize worth to you today?

  Under what conditions is it advantageous for a shareholder

Under what conditions is it advantageous for a shareholder to hold §1244 stock?  Why did Congress bestow these tax benefits on holders of such stock?

  Present value of stream of annuity payments

Assume you're to receive the stream of annual payments (also called an "annuity") of $9000 every year for 3 years starting this year. What is the present value of these three payments?

  Fraud-internal controls and technology

Write a paper of no more than 1,050 words describing the two types of fraud, reasons why fraud occurs, and how internal controls, technology, and auditing can help deter and detect fraud.

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