What is the fixed-cost expenditure for firm

Assignment Help Financial Management
Reference no: EM131930177

1. What is the fixed-cost expenditure for a firm with a DOL of 4.5 that generates pretax profits of $1 million and has $600,000 in depreciation expense?

a) $1.1million

b) $2.5million

c) $2.9million

d) $3.3million

2. Target costing is:

A. a method of cost planning to reduce only manufacturing costs to targeted levels.

B. the process of examining each component of a product to determine whether its cost can be reduced.

C. the process of managing R&D and design costs.

D. a system that focuses on reducing costs during the manufacturing cycle.

Reference no: EM131930177

Questions Cloud

Which one of these will lower net present value of project : Which one of these will lower the net present value of that project?
What is the company total debt : The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. What is the company's total debt?
Mutually exclusive projects : You have mutually exclusive projects and want to decide based on IRR If you require 14%, which one you need to choose with given information and why?
What was the firm end-of-year cash balance : You have just been hired as a financial analyst for Basel Industries.What was the firm's end-of-year cash balance?
What is the fixed-cost expenditure for firm : What is the fixed-cost expenditure for a firm with a DOL of 4.5 that generates pretax profits of $1 million and has $600,000 in depreciation expense?
Calculate weighted average cost of capital : Using the financial statements of any publicly traded company in 2017 calculate the Weighted Average Cost of Capital (WACC).
Total debt-to-equity ratio-what is Plasti-techs WACC : San Dimas Energy Inc. has total debt-to-equity ratio of 0.6. Currently, its debt has a pretax interest rate of 10%. what is Plasti-tech's WACC?
What is probability of booming economy occurring : What is the probability of a booming economy occurring if these are the only two economic states?
Portfolio of three stocks with total market value : A portfolio of three stocks with total market value of $1,000,000 currently has a beta of 1.4. In light of an expected market downturn,

Reviews

Write a Review

Financial Management Questions & Answers

  Commodity price changes and labor costs

An example of diversifiable risk that a financial manager should ignore when analyzing a project's risk would include: Commodity price changes, Labor costs, Overall stock price fluctuations

  Estimate of the intrinsic value of share of the stock

What is your estimate of the intrinsic value of a share of the stock?

  Find the standard deviation of the projects expected NPV

An investment costs $7,000, after tax considerations, and will generate cash flows of $1,500 a year over its life. The capital investment will last for 7, 8, or 9 years, with probabilities of 0.3, 0.4, and 0.3 respectively. Assume the required rate o..

  Portfolio expected return beta

Calculate the expected return of portfolio A with a beta of 1.5. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign.)

  Make capital budgeting decision based on the payback period

Make a capital budgeting decision based on the payback period criteria if both projects require a $25,000 initial investment.

  Change in the bond’s price in dollars

A $1,700 face value corporate bond with a 7.50 percent coupon (paid semiannually) has 12 years left to maturity. Change in the bond’s price in dollars

  Estimated that the initial cost of the equipment

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. Mideque also estimates that the revenues (sales) each year over th..

  Prominent hedge fund investor argues

A prominent hedge fund investor argues that basic materials stocks are in a secular bull market

  Assessing return and risk-standard deviation of the returns

Compute the standard deviation of the returns. Compute the coefficient of variation of the returns.

  Balance sheet and income statement for competing firm

Chose a competing firm and download the balance sheet and income statement for the competing firm.

  What is the probability of negative earnings per share

Given the current capital structure with no debt, what is the probability that Rauchous will have negative earnings per share during the coming year?

  What are the bonds yield to maturity and yield to call

A corporate bond matures in 14 years. The bond has an 8 percent semiannual coupon and a par value of $1,000. The bond is callable in five years at a call price of $1,050. The price of the bond today is $1,075. What are the bond’s yield to maturity an..

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