Everything else remaining the same, an increase in fixed costs: I- increases the break-even point based on NPV II- increases the accounting break-even point III- decreases the break-even point based on NPV IV- decreases the accounting break-even point A. I and III only B. III and IV only C. II and III only D. I and II only
Q: y-year-old high school music teacher who has investments in a 5-year GIC, a high interest savings…
A: The answer provided below has been developed in a clear step by step manner. Credit Risk…
Q: Sue has contributed $2,843.00 every three months for the last 11 years into an RRSP fund. The…
A: Future value of the money include the amount being deposited and amount of compounding interest…
Q: Leveraged buyouts are usually done: a). When a company has a small debt load. b) After the stock…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Note: The October 10 payment is not enough to cover the interest accrued to October 10. Nothing can…
A: Variable rate Loans: Loans whose interest rates are reset periodically are known as variable rate…
Q: Where is 63000 coming from? Current Assets ($73,000)- 63000 = $10, 5000 (Inventory)
A: Information Provided: Current ratio = 3.50 Quick ratio = 3.00 Current Assets = $73,500
Q: What is the Tier I leverage ratio? In what capital risk category would National Bank be placed?
A: Tier 1 Leverage Ratio: It is a ratio used by bank regulators to compare the Tier 1 capital to the…
Q: If a person deposits $3,000 at 6% per year simple interest, what compound interest rate would yield…
A:
Q: pay Cashbox Ltd has the option of buying a new computer system or 5 payments of $85000 each to be…
A: Present value would be the equivalent value of money today considering the time and interest rate…
Q: What is the forecasting risk when falling decisions based on the nvp rule?
A: Net present value refers to the current value of n asset based on some future date. It shows the…
Q: One year ago, Richard purchased 90 shares of common stock for $15 per share. During the year, he…
A: The stock return is the measure of the performance of a stock. It shows a stock's profit or loss…
Q: You and a friend decide to start a small business manufacturing clothing items. You rent a small…
A: Solution:- There are two types of cost associated with a product: a) Fixed cost b) Variable cost…
Q: An investor owns a portfolio of assets that will generate a cash flow of $445 with prob. 0.25,…
A: A portfolio is a collection of financial investments that may include closed-end funds and exchange…
Q: Given the following information: Exchange rate - Canadian dollar 0.665 per DM (spot) Canadian dollar…
A: Final answer Arbitrage profit =can $2.6
Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…
A: Information Provided: Yearly annual income = $15,000 Interest rate = 4% NOTE: As per our…
Q: Takaful wishes to adjust their rates for next year, they calculate that the expected loss fallo…
A: Information Provided: Expected loss ratio = 0.72 Credibility factor = 0.62 Loss adjustment expenses…
Q: Consider the bonds issued by Walt Disney in the figure below. How much will the holder of this bond…
A: We have a bond and all the relevant information about the same are available. We need to quantify…
Q: Dynamic Systems has an outstanding bond that has a $1,000 par value and a 9 percent coupon rate.…
A: Intreast for 6 months =1000×9%×6/12=45 YTM For 6 months =12×6/12=6% Number of periods =10×2=20…
Q: positions on the issue of privacy?
A: The philosopher Immanuel Kant held with dignity that all moral agents should respect their…
Q: On October 31, Year 1, Trailer Homes Company (THC) determines that it will need to buy 175,000 lbs…
A: With the strike price (X) and the market spot price (S) at forward date when trading take place. Net…
Q: A share of Tension-free Economy Ltd. is currently quoted at, a price earning ratio of 2-5 times. The…
A: Steps involved 1)Calculate cost of equity(Part a) 2)market price when there is change(part b and C)…
Q: As you can see, someone has spilled ink over some of the entries in the balance sheet and income…
A: With the data given we need to re-engineer the ratio to find the missing figures. The formula and…
Q: Solve for 4A Craft’s operating breakeven point value ii)Solve for of 4A Craft’s EBIT value of that…
A: Breakeven Point: It refers to the point at which the firm's cost and revenues are equal. Hence, at…
Q: 1.) Company ABC spent 10000 CAD on a training program and gained the benefits of 20,000 CAD. On the…
A: Net benifit =20000-10000=10,000 Benifit to cost ratio = 20000/10000=200%
Q: Examine whether equity should be domestically listed in a single exchange, or cross-listed in…
A: Equity refers to the value that should be returned to the shareholders of the company after the…
Q: Interpret your results in (c) above, assuming that the historical average return of 8.5% from the…
A: d) In part c, at a rate of 8.59% the stock is considered to be fairly priced. However, since the…
Q: Scarlet Company received an invoice for $67,000.00 that had payment terms of 2/5 n/30. If it made a…
A: Many companies provide their customers with trade credit which is the ability to receive the goods…
Q: Which of the following transactions relating to shares in Pinder Ltd takes place in what we referred…
A: The financial market is defined as the place where financial assets and securities are bought and…
Q: Which investment project(s) should the business undertake assuming each project is: (a) divisible…
A: Capital rationing is a situation where a company cannot invest in all profitable projects, even…
Q: The balance sheet for Panoramic Open Pictures (POP) shows $300,000 in total assets and $200,000 in…
A: The return on equity is a method that helps evaluate an entity’s profitability. The return on equity…
Q: uestion 3: A manufacturing Co. Ltd. opens the costing records, with the balances as on pril, 2012 as…
A:
Q: We have three assets A1, A2, A3 and the following information: E(r1)=15%, σ1=12%,; E(r2)=19% and…
A: The diversification of assets: A portfolio comprises various assets in order to reap the benefits of…
Q: he discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What…
A: The effective rate is the after considering the impact of compounding and always more than actual…
Q: quarterly. Find the amount available in this fund after 10 years
A: Quarterly payment is $30,000. Maturity period is 10 years. Rate of interest is 6%. Compounding…
Q: D6) Since funds must keep flowing for a country to remain economically viable, briefly explain the…
A: Financial markets The place where the purchase and sales of financial securities take place is known…
Q: We have a three-month forward rate agreement (FRA) with underlying 90 day LIBOR starting on Jan 1,…
A: In valuation of FRA and in implementing FRA formula, following time line should be considered.
Q: j. Find the PV and the FV of an investment that makes the following end-of-year payments. The…
A: Information provided: Interest rate = 10% Year 1 Payment = $100 Year 2 Payment = $300 Year 3…
Q: What is the number of months required for a deposit of $1320 to earn $16.50 interest at 3.75%?
A: Deposited amount or principal balance is $1320 Interest earned is $16.50 Interest rate is 3.75% To…
Q: April, 2012 as follows: Particulars Material control Ale Work-in-progress A/c Finished Goods A/c…
A:
Q: Required: e) True or False: Central Bank of China tend to borrow domestically to buy foreign asset…
A: Net foreign asset position of the nation is referred as the asset's value, where the country used to…
Q: You are given the following information about a person aged exactly x: 9x = 0.03, 9x+1 = 0.04, 9x+2…
A: The expected present value is used to find out the value of an investment based on the concept of…
Q: a. Calculate his total profit or loss made from the sale of the phones. Round to the nearest…
A: A trade discount is a discount given by the manufacturer to the seller. It deducts from the list…
Q: A four-year bond has a coupon rate of 5% and pays its coupons annually. It has a face value of £200.…
A: Bond valuation is the process of determining the fair price, or value, of a bond. As a bond's par…
Q: Explain five reasons why the financial institution's
A: The financial institution hold sufficient cash with them so that they can take use of opportunities…
Q: Q#9. Suppose you and most other investors expect the inflation rate to be 7% next year, to fall to…
A: The term structure of interest rates: The term structure of interest rates gives the interest rate…
Q: Suppose that the CEO of a firm has to make an annual report to shareholders about 2 of the divisions…
A: The question requires us to weigh segmental or divisional reporting vs integrated reporting. We need…
Q: mind map’
A: The preparation and use of the most important requirements and equipment to protect passengers and…
Q: Of 12 -1 12 1. $800.00 2. C$895.76 3. C$875.69 4. $885.73 5. NONE End of Year it interest rate 1-20…
A: The concept of the time value of money states that the money received earlier has more value than…
Q: 6. Intention to create legal relations are presumed in which of the following relationships. In the…
A: Legal relations between the two or more parties can be created with the presence of mutual…
Q: is the concept of financial management? A goal of financial management is to maximize the…
A: Financial management is very important departments of the company and with course of time value of…
Q: Stéphanie visited a financial institution and signed a 12-year, non-interest-bearing promissory note…
A: Time period of promissory note is 12 years or 12×4=48 Quarters Interest rate is 3.15% compounded…
Everything else remaining the same, an increase in fixed costs:
I- increases the break-even point based on NPV
II- increases the accounting break-even point
III- decreases the break-even point based on NPV
IV- decreases the accounting break-even point
A. I and III only
B. III and IV only
C. II and III only
D. I and II only
Step by step
Solved in 2 steps
- When fixed costs decrease and all other variables remain unchanged, the break-even point will _______________. A. remain unchanged B. increase C. decrease D. produce a lower contribution marginWhen should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable costThe breakeven point decreases if a. the selling price per unit decreases b. the contribution margin unit increases c. none of the given answers d. the total fixed costs increase e. the variable cost per unit increases
- :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not change at all with .c decreases with .d does not change within a relevant rangeWhich of the following conditions would cause the break-even point to increase? Oa. total fixed costs decrease Ob. unit selling price increases Oc. total fixed costs increase Od. unit variable cost decreasesWhat happens to average fixed cost as more products are made? a. Remains the same b. Increases c. Decreases d. Fluctuates
- When the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the sameThe breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin per unit decreases c.none of the given answers d. the selling price per unit increases . e. the total fixed costs increaseWhat is the result when the contribution margin ratio increases? A. Break-even point increases B. Fixed Cost decreases C. Break-even point decreases D. No effect on break-even points
- Please assis with part G only 1. Briefly explain the impact of each of the following scenarios on the break-even point and the margin ofsafety:(i) Increase in sales volume(ii) Increase in total fixed costs(iii) Increase in selling price per unit(iv) Decrease in variable costs per unitBefore a company reaches the breakeven point Select one: O-a. The fixed cost 1s egual to zero O b. Total fixed costs are increasing Oc The total contribution margin is lower than totalfixed costs O d. The total contribution margin is negative Oe The contribution margin per unit is higher than the fixed costs per unitWhat effect does the increase in fixed costs have on the break-even units? 1. Decrease 2. Increase 3. No-effect 4. None of these choices are correct.