10. If the selling price is £20 per unit, variable costs are £5 per unit and fi £9,000, the BEP (Break-Even Point) in sales value is: A. £7,200 B. £9,000 C. £12,000 D. £18,000
Q: 2. A Guyanese businessman is contemplating investing his money in a Jamaican fi- nancial asset which…
A: The interest rate arbitrage is the profit earned due to interest rate differentials between…
Q: Thoroughly describe the concept of hedging, focusing on the FX markets. In addition to the economic…
A: Foreign exchange market is defined as the globally decentralized or an over the counter market…
Q: A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be…
A: rate positively . Expected net cash flows Time Project A Project B 0 ($300)…
Q: Les Moore retired as president of Goodman Snack Foods Company but is currently on a consulting…
A: Part a and part b answers are given below(highlighted) and excel formulas are also included
Q: Suppose the discount rate is 10%. You bought a 10-year, 8% coupon bond with 7 years after it is…
A: Semiannual coupon amount (C) = $40 (i.e. $1000 * 0.08 / 2) Maturity value (MV) = $1000 (Equal to par…
Q: Martin had a successful small business before a recession hit his community. Martin believes the…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: nformation: Revenues = Estimated at $1,000,000 for the upcoming year and anticipated to grow by 5%…
A: Lease is a contract in which lessee gets right to use a fixed asset of lessor over the contract…
Q: Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon…
A: A bond is a debt instrument that pays coupons and face value as the repayments for the debt that the…
Q: With the growing popularity of casual surf print clothing, two recent MBA graduates decided to…
A: NPV It is a capital budgeting tool to decided on whether the capital budget should be accepted to…
Q: ducer is studying the possibility of installing an irrigation system on his property. He estimates…
A: The present value would be the equivalent value based on interest rate and time period of project…
Q: bigail lives in the UK and earns 40,000 pounds sterling per year. Her friend Barry lives in Japan…
A: Currency exchange can be defined as the process of valuing one currency over another currency in…
Q: I am not able to make my mortgage payments. The amount I owe the lender is more than the value of my…
A: Mortgage is referred as the kind of loan, which helps in purchasing or maintaining the land, home,…
Q: A company financed the purchase of a machine with a loan at 2.5% compounded monthly. This loan would…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: f you issue a thrifty year fixed rate mortgage to finance the purchase of a home you are locked into…
A: Mortgage It is a type of loan where borrower pays a series of fixed periodic payment. This periodic…
Q: New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: ( what is the maximum loan (P) you can. take out if you can afford $3800 quarterly payment for 13…
A: Quarterly Payment "PMT" is of $3800 Time period is 13 years Interest rate is 2.5% To Find: Maximum…
Q: f I can buy a share now in BMW on the stock market for £30 or sell now for £28 what is the bid ask…
A: Bid price The quoted sale price in the market in which dealers want to purchase the share and an…
Q: How can the Greater Liberalizations and removal of barrier to trade can stimulate FDI that can…
A: FDI is very important for the growth of business and growth of economy of the nation and FDI is very…
Q: PROBLEM 6 10 K Reporting CARNIVAL CRUISE LINES refer to: Exhibit 13 Selected Financial…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: Find the present value at 12% interest of Php 1,000 due in 5 months.
A: Present value of an amount of money in future is calculated using following equation Present value =…
Q: 5. Dan has heard that his required investing knowledge is redced due to the efficient market…
A: Efficient market hypothesis is one of the basic theory that explain the movements in the market and…
Q: Northwest Utility Company faces increasing needs for capital. Fortunately, it has an Aa3 credit…
A: Weighted cost of the capital includes the weighted cost of debt, weighted cost of equity and…
Q: Depletion expense a. is usually part of cost of goods sold b. includes tangible equipment in the…
A: Depletion expense It is a technique used to allocate the cost of extracting natural resources. It is…
Q: a) First, ignore the fact that rrf depends on whether you are long or short the risk-free asset.…
A: Note: This post contains several questions. The first three have been solved below. Please repost…
Q: UESTION FOUR Dell is among the world leaders for manufacturing PC, mobile, tablets, and other…
A: Some of Public limited company want to go back to private company due to some of advantages over…
Q: Citywide Courier Services projects that demand for its services will rise for a period of three…
A: present value refers to the current value of an asset based on some future date. The money present…
Q: Using the MACRS table in your sides covering chapters 9-11 and for an asset purchased at a cost of…
A: The MACRS is the modified accelerated cost recovery system and it is the depreciation tax system…
Q: They want to invest around $50,000 and they are expecting good growth in the next 5 years. As they…
A: Cost of Condo varies due to variety of reason like i) Location ii) Unit type, amenities and…
Q: Canuck Oil Corporation is a Canadian crude oil producer. Today is July 15. Canuck’s estimated oil…
A: Canuck’s estimated oil production level in three months’ time will be 100,000 barrels, company…
Q: Set out and explain how the p/e ratio provides a shorthand guide to the market’s assessment of a…
A: The P/E ratio is very important in the valuation of the firm and it show how is the firm going to do…
Q: Question 8 of 9 Garrett was evaluating the feasibility of a project that has an initial investment…
A: Internal Rate of Return (IRR) is the rate at which the Net Present Value of cash flows is Nil.
Q: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start rate is…
A: Given: Year = 30 Mortgage loan = $200,000 Rate caps are 3/2/6
Q: 9. If a firm borrows $50 million for one year at an interest rate of 9%, what is the present value…
A: Interest tax shield: Interest expense deductions from taxable income result in lower income taxes,…
Q: You are evaluating a project. The cash flow of this project is as follows: Year Cash…
A: Net Present Value or NPV : It is the sum of the present values of all future cash inflows less…
Q: A down town bank is advertising that if you deposit $1,000 with them, and leave it there for 65…
A: In the given question we requires to calculate the monthly interest rate paid by the bank. Details…
Q: A city is analyzing two alternatives for generating electricity. The first is the construction of a…
A: Net Present Value An economic metric known as net present value (NPV) adds up all potential inflows…
Q: Suppose that you decide to buy a car for $57,000, including taxes and license fees. You saved…
A: PMT = (P(r/n)) / (1-(1+(r/n))-nt) Where PMT = Monthly payment P = Principal Amount r = Annual rate…
Q: Microsoft has an Expected Return of 44%, and standard deviation of 24%. Wal-Mart has a expected…
A: Expected return of Microsoft is 44% Standard deviation "SD" of Microsoft is 24% Walmart's standard…
Q: Suppose your company needs $18 million to build a new assembly line. Your target debt- equity ratio…
A: weighted average flotation cost = floatation cost of debt * debt / (debt+equity) + floatation cost…
Q: A 5/1 adjustable rate mortgage has a fixed rate period for five years and then the rate can adjust…
A: A 5/1 ARM is a popular type of adjustable-rate mortgage. This is a loan that has its interest rate…
Q: Drillago Company is involved in searching for locations in which to drill for oil. The firm’s…
A: Net present value is the difference between the present value of cash flow and initial investment of…
Q: A steam boiler is needed as part of the design of a new plant. The boiler can be fired natural gas,…
A: Present worth is equivalent cost of all cost that going to occur during the economic life of the…
Q: Following is a table for the present value of an annuity of $1 at compound interest: Year 6%…
A: Given: Future value = $57,000 Interest rate = 6% Years = 3
Q: Tshepo needs R5 000 urgently. He goes to the bank and borrows the money at an interest rate of 28%…
A: Compound interest is the interest earn on interest. The rate at which compound interest accrues…
Q: An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The…
A: Given: Particulars Amount Cash value(PV) $11,300 Payment (PMT) $950 Interest rate 6%
Q: An investment of $350,000 is made, followed by income of $200,000 each year for three years. There…
A: Given, The initial investment is $350,000 Cashflow is $200,000 for 3 years
Q: ane will retire in 30 years. This year he wants to deposit an amount of €150,000 to become available…
A: The future value of today amount depends on the interest rate and period of deposit. The future…
Q: Consider a two-period binomial tree model with u = 1.1 and d = 0.90. Suppose the current price of…
A: The binomial option pricing is used to find the value of the options that have multiple values over…
Q: How much will Mr. Mailet have in the RRSP after 20 years? (Round the final answer to the nearest…
A: The amounts are paid regularly in retirement account but after long period they grow to very large…
Q: You are going to buy a home for $500,000. You are trying to decide between a issuing a 30 year fixed…
A: An equated monthly installment (EMI) is a set monthly payment provided by a borrower to a creditor…
Step by step
Solved in 2 steps
- The selling price of a particular product is $37.00 per unit, fixed costs total $225,600, and the breakeven sales in dollars is $940,000, what will the variable expense per unit be? Question 4 options: $117.17 $28.12 $8.88 $45.88What is the correct choice? How many total dollars of sales must BAC Company sell to break even if the selling price per unit is $8.50, variable costs are $4.00 per unit, and fixed costs are $9,000? a. $4,000 b. $8,500 c. $9,000 d. $17,000. If a firm's margin of safety is 35% on sales of P200,000, then its margin of safety on sales of P300,000 will be (assume fixed costs, the variable cost per unit, and the sales price per unit do not change): a.P105,000 b.P170,000 c.P100,000 d.P 35,000
- Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $14400. What is the breakeven point in dollars? $24000 $36000 $20160 $23040If fixed costs are $750,000 and variable costs are 70% of sales, what is the break-even point (dollars)? Group of answer choices $1,275,000 $525,000 $1,071,429 $2,500,000Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?
- f the selling price is $32 per unit, the variable cost is $24 per unit, and total fixed cost is $320,000, what will be the break even point in units?The selling price of a product is $75.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $300,000, what are total fixed expenses? $80,000 $4,000 $300,000 $20If the sales price is $150 per unit, the variable cost is $90 per unit, and total fixed costs is $24,000, the breakeven in sales dollars is: Question 5 options: $15,000. $24,000. $36,000. $60,000.
- 50-By assuming fixed cost OMR 10,000, breakeven point OMR 22,000, variable cost per unit OMR 100 and selling price per unit OMR 150, find out the profit when sales are OMR 45,000. O a. OMR 23000 O b. OMR 12000 O c. OMR 5000 O d. OMR 35000Assume the selling price per unit is $30, the contribution margin ratio is 40%, and thetotal fixed cost is $60,000. What is the break-even point in unit sales?a. 2,000b. 3,000c. 4,000d. 5,000Q3. If the unit selling price is $16, the unit variable cost is $12, and fixed costs are $160,000, what are the break-even sales in units?? Answer: ______________________________________________________________________ Explain your answer: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________