What is local operating margin

Assignment Help Financial Management
Reference no: EM131825337

Local Co. has sales of $10.7 million and cost of sales of $5.9 million. Its selling, general and administrative expenses are $540,000 and its research and development is $1.2 million. It has annual depreciation charges of $1.2 million and a tax rate of 35%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin?

Reference no: EM131825337

Questions Cloud

What is the ytm if the coupons are paid semi-annual : estimate the Yield-to-Maturity (YTM) of the instrument. What is the YTM if the coupons are paid semi-annual?
Consider retail firm with net profit margin : Consider a retail firm with a net profit margin of 3.58%?, What is the? firm's current? ROE?
What is the price of the consol : If the current interest rate is 3 percent, what is the price of the consol?
Is there an arbitrage opportunity : Assume the dividend rate is 3% and there’s an at-the-money put expiring in 2 years that costs $15. Is there an arbitrage opportunity?
What is local operating margin : What is Local's operating margin? What is Local's net profit margin?
What is rate of return on the incremental investment : What is the rate of return on the incremental investment ?
Calculate the required initial investment by entrepreneur : Fixed assets of $500,000 will be needed to start the venture. calculate the required initial investment by the entrepreneur.
Callable bond has less reinvestment risk : A callable bond has less reinvestment risk and more price appreciation potential than a similar but option-free bond. This statement is most likely
What was GEs book debt-equity ratio : What was GE's book debt-equity ratio? What was GE's market, debt-equity ratio? What was GE's enterprise value?

Reviews

Write a Review

Financial Management Questions & Answers

  Valuation of a stock through the gordon growth model

The Gordon Growth Model of stock valuation to calculate the current market price of a share of Triple M Corporation.

  What is the speculators profit per unit

A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55 on the expiration date. The speculator will exercise the option on the expiration date (if it is feasible to do so). What is..

  Stock before a dividend and repurchase decision

Stock before a dividend/repurchase decision is made and the results under each of the three options.

  Determine key reasons why a multinational corporation

* From the e-Activity, determine key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide suppor..

  What is the risk premium assessed for this opportunity

An investor considering an opportunity that promises to provide 12% returns. They have obtained an estimate of their risk free rate, which is 3%. What is the risk premium assessed for this opportunity? What does the risk premium mean in this example?

  What is the free cash flow to the firm

Eagle Products’ EBIT is $440, its tax rate is 40%, depreciation is $20, capital expenditures are $60, and the planned increase in net working capital is $26. What is the free cash flow to the firm? Free cash flow $

  Compute the initial investment

Mideque, Inc., is considering a project to produce pens. It is estimated that the initial cost of the equipment, including transportation, installation, and so forth, will be $24,000. Assume the working capital requirement will be $2,000 and that the..

  Calculate IBCs cash conversion cycle

Calculate IBC’s cash conversion cycle. Calculate the financing required for IBC’s cash conversion cycle to two decimal places. Assume a 365 day year.

  Discuss the pros and cons of strategy

The US government has more than $16 trillion in debt outstanding in the form of Treasury bills, notes, and bonds in 2013. With short-term interest rates near 0% in 2013, suppose that the Treasury decided to replace maturing notes and bonds by issuing..

  What is the duration of a four-year treasury bond

What is the duration of a four-year Treasury bond with a 11 percent semiannual coupon selling at par? What is the duration of a three-year Treasury bond with a 11 percent semiannual coupon selling at par?  What is the duration of a two-year Treasury ..

  Investment banking has changed dramatically

Investment banking has changed dramatically. Some key players either went bankrupt or were bought out. The remaining two investment banks had to apply to become bank holding companies. However, the industry experienced something of a comeback. Goldma..

  What is the annualized holding period return

Suppose you purchased a stock on June 5 for $30. It paid $0.20 cash dividends on July 1 and Oct. 1, and you sold it for $31.16 on Dec. 18. What is the annualized holding period return (APY) of this investment?

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