Homework Answers
The correct answer is Sales
Explanation : - The volume of sales is the most important variable influencing a firms financing requirement. Sales volume directly impacts the level of operation and the plant & equipment requirement of the firm. When the sales volume is large, the level of inventory held by the firm will also grow large and accounts receivable also increases. Thus every activity of the firm is related to the volume of sales and thus it is the most important variable that influences a firm's financing requirement.
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Question 1 The most important variable that influences a firm's financing requirements is its projec O...
What are Jarmon's financing requirements or total assets for 2019
(Financial forecasting—discretionary financing needs) J. T. Jarmon, Inc. has been in business for only 1 year, and the CFO expects that the relationship between firm sales and its operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales.Last year, Jarmon had $11 million in sales and net income of $1.10 million. The firm anticipates that next year's sales will reach $13.750 million, with net income rising to $1.21 million. Given its present high rate of growth, the firm retains all...
Question 1 5 pts What is WACC? Why is it important? O The firm's required return....
Question 1 5 pts What is WACC? Why is it important? O The firm's required return. It is used as the discount rate in NPV and it is used to compare to IRR. O It is the required return on debt. O It is the firm's required return. If IRR is less than WACC, you should accept the project. O It is the required return on equity. Question 2 5 pts What are some of the issues with the payback...
Question 8 Which of these curves is the competitive firm's supply curve? O the average variable...
Question 8 Which of these curves is the competitive firm's supply curve? O the average variable cost curve above marginal cost O the average total cost curve above marginal cost O the marginal cost curve above average variable cost o the marginal cost curve above average total cost
help Question 2 O Mark this question If variable costs for a firm are $800, the...
help
Question 2 O Mark this question If variable costs for a firm are $800, the average total costs are $6, and the firm sells 175 units, what are the firm's fixed costs? O $1050 O $975 O $250 O $162,50
is question 1 correct and how do you do question 2? 1. The of a firm's...
is question 1 correct and how do you do question 2?
1. The of a firm's debt can be used as the firm's current cost of debt. A) current yield B) coupon rate yield to maturity D) discount yield 2. The expected return on Target's equity is 11.5%, and the firm has a yield to maturity on its debt is 6%. Debt accounts for 18% and equity for 82% of Target's total market value. If its tax rate is 35%,...
One of the most important financial management activities that a firm undertakes is its evaluation and...
One of the most important financial management activities that a firm undertakes is its evaluation and allocation of investment funds to support its future survival and growth. These activities may be motivated by the desire to expand the firm's revenues, reduce its costs, or satisfy its mandatory or voluntary legal, health, and safety requirements. They may have, more or less, multiyear effects on the organization and may or may not be considered as capital budgeting activities. Capital budgeting is the...
Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge its...
Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge its used in planning, making strategic and tactical decisions, evaluating performance, and controlling operations. Required: Form a team consisting of three persons. Each team member will be responsible for one of the following businesses: a. Dental clinic b. Fast-food restaurant c. Auto repair shop 1. For each business, decide what single measure best reflects the overall level of activity in the business and give examples...
D l Question 1 When calculating incremental cash flows, we should include O interest O financing...
D l Question 1 When calculating incremental cash flows, we should include O interest O financing expenses Q sunk costs opportunity costs | Question 2 2 pts The cash flows that occur just because of a new project are called O marginal cash flows o project cash flos e additional cash flows O incremental cash flows 2 pts D | Question 3 Sun Corp. uses a discount rate of 6% for below-average risk projects, 8% for average-risk projects, and 10%...
QUESTION 4 The term variable costs refers to O prices of inputs that vary a lot...
QUESTION 4 The term variable costs refers to O prices of inputs that vary a lot increases in the prices of any input costs that vary with the type of final product being produced costs that vary with the quantity of output being produced QUESTION 5 If a firm's marginal cost exceeds its marginal revenue, then O profit is negative the firm should shut down cutting back production will increase profits the firm should reduce its per-unit cost by increasing...
QUESTION 25 Occasionally, companies engage in important investing and financing activities which do not affect cash....
QUESTION 25 Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared? 1. In investing activities. 2. In a note to the financial statements or in a supplemental schedule. 3. In both investing and financing activities. 4. In a separate section in the cash flow statement with a corresponding nero balance QUESTION 26 When determining the amount of...
Question 1 5 pts What is WACC? Why is it important? O The firm's required return. It is used as the discount rate in NPV and it is used to compare to IRR. O It is the required return on debt. O It is the firm's required return. If IRR is less than WACC, you should accept the project. O It is the required return on equity. Question 2 5 pts What are some of the issues with the payback...
Question 8 Which of these curves is the competitive firm's supply curve? O the average variable cost curve above marginal cost O the average total cost curve above marginal cost O the marginal cost curve above average variable cost o the marginal cost curve above average total cost
help
Question 2 O Mark this question If variable costs for a firm are $800, the average total costs are $6, and the firm sells 175 units, what are the firm's fixed costs? O $1050 O $975 O $250 O $162,50
is question 1 correct and how do you do question 2?
1. The of a firm's debt can be used as the firm's current cost of debt. A) current yield B) coupon rate yield to maturity D) discount yield 2. The expected return on Target's equity is 11.5%, and the firm has a yield to maturity on its debt is 6%. Debt accounts for 18% and equity for 82% of Target's total market value. If its tax rate is 35%,...
One of the most important financial management activities that a firm undertakes is its evaluation and allocation of investment funds to support its future survival and growth. These activities may be motivated by the desire to expand the firm's revenues, reduce its costs, or satisfy its mandatory or voluntary legal, health, and safety requirements. They may have, more or less, multiyear effects on the organization and may or may not be considered as capital budgeting activities. Capital budgeting is the...
D l Question 1 When calculating incremental cash flows, we should include O interest O financing expenses Q sunk costs opportunity costs | Question 2 2 pts The cash flows that occur just because of a new project are called O marginal cash flows o project cash flos e additional cash flows O incremental cash flows 2 pts D | Question 3 Sun Corp. uses a discount rate of 6% for below-average risk projects, 8% for average-risk projects, and 10%...
QUESTION 4 The term variable costs refers to O prices of inputs that vary a lot increases in the prices of any input costs that vary with the type of final product being produced costs that vary with the quantity of output being produced QUESTION 5 If a firm's marginal cost exceeds its marginal revenue, then O profit is negative the firm should shut down cutting back production will increase profits the firm should reduce its per-unit cost by increasing...
QUESTION 25 Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared? 1. In investing activities. 2. In a note to the financial statements or in a supplemental schedule. 3. In both investing and financing activities. 4. In a separate section in the cash flow statement with a corresponding nero balance QUESTION 26 When determining the amount of...
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