What profit margin do they have to hit to make plan work

Assignment Help Financial Management

Reference no: EM131591170

The Big Country Company will achieve $5 million in sales if they add $250,000 in assets, can raise $100,000 in additional funding, and vendors extend an additional $50,000 in credit. If The Big Country Company retains 25% of earnings, what profit margin do they have to hit to make this plan work?

4.0%

6.0%

8.0%

12.0%

16.0%

Reference no: EM131591170

Questions Cloud

What is the after-tax cost of debt for caldwell : Income for Caldwell Instruments is sufficiently high that if it increases its income by adopting a new project, What is the after-tax cost of debt for Caldwell?

Reinsure part of insurer risks : Occasionally, Insurer X will reinsure part of Insurer Y’s risks, and Insurer Y will reinsure part of Insurer X’s risks.

What is your portfolio return for the year : You buy 100 shares of Apple stock at $3 and 200 shares of Boeing stock at $3. What is your portfolio return for the year?

Evaluate feasibility of procedure for a health care facility : In a substantial post to each, evaluate the feasibility of putting together their recommended policy and/or procedure for a health care facility.

What profit margin do they have to hit to make plan work : what profit margin do they have to hit to make this plan work?

Powell''s target fixed assets to sales ratio : Powell's target fixed assets to sales ratio?

What is its unlevered beta : Angel Enterprises has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, what is its unlevered beta?

Calculate the consumer surplus and producer surplus : ECO10250 - What is the equilibrium price and quantity in this market for ice creams and calculate the consumer surplus and producer surplus at the equilibrium in this market.

Example of company that has any kind of agency conflict : Research and provide an example of a company that has any kind of agency conflict.

User Account

All Pages